New Delhi, Jun 11 (KNN)  The government has brought in changes for acceptance of deposits by companies allowing them to accept deposits without insurance.  The relief has been given as a transitional measure following enactment of the Companies Act 2013. 
 
“In view of the suggestions received from the stakeholders to give transitional period for complying with the deposit insurance requirements, the amendment in the relevant rule has been made allowing companies to accept deposits without deposit insurance for one year i.e. till 31.03.2015,” an official notification said.
 
Further, with a view to allow relief to companies facing difficulties in repayment of deposits, provisions of section 74(2) and (3) of the Act have been brought into force with effect from 6th June, 2014 and the Company Law Board (CLB) has been allowed to exercise the powers to allow further time to companies for repayment of deposits/interest in certain cases.
 
Section 74 (2) of the Companies Act 2013 says:  The Tribunal may on an application made by the company, after considering the financial condition of the company, the amount of deposit or part thereof and the interest payable thereon and such other matters, allow further time as considered reasonable to the company to repay the deposit.
 
On the other hand, Section 74 (3) says, If a company fails to repay the deposit or part thereof or any interest thereon within the time specified in sub-section (1) or such further time as may be allowed by the Tribunal under sub-section (2), the company shall, in addition to the payment of the amount of deposit or part thereof and the interest due, be punishable with fine which shall not be less than one crore rupees but which may extend to ten crore rupees and every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years or with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees, or with both.  (KNN/ES)