Kerala HC Directs on Nidhi Companies: Operations Shouldn’t Become Impossible

Ulliyeri Sree Nidhi Limited Vs Union of India (Kerala High Court) The Kerala High Court’s recent ruling on Nidhi Companies underscores the importance of regulating financial activities within the bounds of the law without rendering their operations impossible due to excessive restrictions. The court recognized the need for a reasonable regulatory framework, especially when public money is involved. In response to the concerns raised by Nidhi Companies regarding the recent amendments to Section 406 of the Companies Act, 2013, the court emphasized the necessity of striking a balance betwee...