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

Violation of deposit rules: whether pre commencement share application money triggers regulatory notices and filing obligations. Private limited companies received regional director notices alleging violation of deposit rules due to share application money shown in the 2013 balance sheet, despite Deposit Rules commencing on 1 4 2014; those companies closed the share application accounts during 2013 14 by refunds or adjustments. The central issue is whether amounts recorded before the rules' commencement attract regulatory liability or require filing (e.g., Form D4) when the post adjustment deposit position is nil. The recorded reply merely requests the notices for further analysis.