Companies Act: Amendments in Deposit Acceptance Rules, 2001

Ministry of Law, Justice, and Company Affairs issued a notification on September 25, 2001, amending the Companies (Acceptance of Deposits) Rules, 1975. Key changes include clarification that private companies can accept deposits from directors, relatives, or members, provided the funds are not borrowed. The amendment also mandates reporting of the total number of small depositors and details on waived interest if a default occurs. Additionally, the Regional Director of the Department of Company Affairs is designated as the authorized officer for complaints under Section 58AAA. These changes were made in consultation with the Reserve Bank of India.

GOVERNMENT OF INDIA

MINISTRY OF LAW, JUSTICE AND COMPANY AFFAIRS

(DEPARTMENT OF COMPANY AFFAIRS)

NOTIFICATION

New Delhi, the 25^th September, 2001

G.S.R. No.689(E).- In exercise of the powers conferred by sections 58A, 58AA and 58AAA, read with sub-clauses (a) and (b) of sub-section (1) of section 642 of the Companies Act, 1956 (1 of 1956), the Central Government, in consultation with Reserve Bank of India, hereby makes the following rules further to amend the Companies (Acceptance of Deposits) Rules, 1975, namely: –

1.”(ix) any amount received by a private company from a person who, at the time of the receipt of the amount, was a director, relative of director or member:

2. Provided that the director or member, as the case may be, from whom money is received, furnishes to the company at the time of giving the money, a declaration in writing to the effect that the amount is not being given out of funds acquired by him by borrowing or accepting from others;”.

3. In rule 4 of the said rules, in sub-rule (2), after clause (j), the following clauses shall be inserted, namely:-

“(ja) the total number of small depositors and amount due to them in respect of which default has been made;

(jb) the fact of waiver of interest accrued on deposits of the small depositors.”.

4. After rule 11 of the said rules, the following rule shall be inserted, namely:-

“11A. The Regional Director of the Department of Company Affairs shall be the authorised officer to make complaints under sub-section (2) of section 58AAA of the Act.”.

[F.No. 1/17/2000-CL.V]

AMASWAMY

Joint Secretary to the Govt. of India

Foot Note.- The principal rules were published vide G.S.R.43(E), dated the 3^rd February, 1975 and subsequently amended by:-