One more attempt has been made from my side to share my knowledge and experience regarding “Deposits” under the Companies Act, 2013 through this Article. As the new notification published on MCA (Ministry of Corporate Affairs) on date 22nd January 2019, this Article contains the Introduction, definition, clarification, applicability, required e-form and other important points as per the Companies Act, 2013 and amendment in Rules thereunder. I hope this article would be given some help to our professional working.

Introduction:

To run a business one of the most important part is Money/fund.  The Companies borrow funds from various sources like Banks, Financial Institutions, other Body Corporates, Members, Director or Stake Holders etc. In simple term, the receipt of money by way of loan and any other form by a company is called “Deposit”. But as per the Companies Act 2013, there are many transactions that are not included in the definition of the Deposit. 

Applicable Sections/Rules:

Section 73, 74, 75, 76, 76A of the Companies Act 2013 read with the Companies (Acceptance of Deposits) Rules 2014 and Section 447- For Punishment for Fraud. 

Definitions:

As per section 2 (31) “Deposit” includes any receipt of money by way of deposit or loan or in any other form by a company, but does not include such categories of amount *as may be prescribed in consultation with the Reserve Bank of India; (read with Rule 2(1) (c)) of the Companies (Acceptance of Deposits) Rules, 2014)

*Note: Rule 2(1) (c) defines clearly the points that does not include as Deposit.

Latest Notification published on the MCA in respect of further amendment in the Companies (Acceptance of Deposits) Rules, 2014 notified in the Gazette of India on 22nd of January 2019 by inserting sub rule (3) in rule 16(A) videCompanies (Acceptance of Deposits) Amendment Rules, 2019

As per the Latest Notification, the company shall require to be filed a return of outstanding receipt of the money or loan that is considered or not considered as deposits under Companies Act 2013. The clarification of said notification as in following points:

i) It is Onetime return;

ii) Every company other than Government Company shall file this return.

iii) The return shall include the details of outstanding receipt of money or loan by a company for the period from 01st April 2014 to the date of publication of this notification i.e. 22nd January 2019;

iv) The company shall file this return in e-form DPT-3 within 90 days from the date of publication of this notification i.e. 22nd January 2019;

NOTE: the updated version of e-form DPT-3 will be updated soon on MCA Portal. 

Purpose of return:

  • Return of deposit;
  • Return of Deposit or Particulars of transactions by a company but not considered as deposits in terms of rule 2(l)(c) of the Companies( Acceptance of Deposits) Rules, 2014.

ExplanationIt is hereby clarified that Form DPT-3 shall be used for filing return of deposit or particulars of transaction not considered as deposit or both by every company other than Government company.” 

Applicability:

Every Company other than Government Company. 

E-form and time period of filing:

DPT-3 within 90 days from 22nd January 2019 (date of publication in the Official Gazette).

Required Attachment(s)- as mentioned in draft copy e-form DPT-3:

  1. Auditor’s Certificate;
  2. Copy of trust deed;
  3. Copy of instrument creating charge;
  4. List of depositors;
  5. Details of liquid assets;
  6. Optional attachment, if any.

All Readers are advised to refer relevant provision of law before applying or accepting any of the point mentioned above or not. Author accepts no responsibility whatsoever and will not be liable for any losses, claims or damages which may arise because of the contents of this write up.

I hope that this article would be helpful to our professional working and endeavors under Companies Act, 2013. Thank you to visit and read this article. Kindly share your opinion.

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One Comment

  1. sunil k jain says:

    Invested in UNITECH DEPOSIT 5 Years before only interest amt. recd. till maturity. Principal amount not receiving. i have also complaint with MCA site. I advice be carefull before investing. It is more safer to invest in Debentures….If any body has way to get my Deposit amount returned to share me.

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