Violation of Deposit

[Ramanan Ram]

Recently private limited companies have been receiving notice from the regional director about the violation of deposit and filing of prosecution on company and directors. These companies had maintained share application money in 2013 Balance Sheet. The Deposit rules comes only from 1-4-2014. These companies have closed the share Application account during the financial year 2013-14 by refund of money or adjustments. How far is the notice applicable to these companies and what is the violation. I feel there is also no requirement to fill form D 4 since the deposit is Nil

[DR.MARIAPPAN GOVINDARAJAN]

You may send the copy of the notice to my email id govind.ayyan@gmail.com I will analyze and advise you further.

AI Summary

Private companies face potential prosecution for alleged deposit violations; uncertainty over rule applicability for pre-2014 share applications. Private limited companies have received notices from the regional director regarding alleged violations related to deposits and potential prosecution of the company and its directors. These companies had recorded share application money in their 2013 balance sheets. The deposit rules were only enacted starting April 1, 2014. These companies resolved the share application accounts by refunding or adjusting the money during the 2013-14 financial year. There is uncertainty about the applicability of the notice and the nature of the violation, with a suggestion that filing form D 4 is unnecessary since there are no deposits.