Scope and provision of Companies (Acceptance of Deposits) Rules, 1975 - Companies Law - Letter : No. 1/101/75‑CL‑XIV,

Letter : No. 1/101/75 CL XIV, dated 11 11 1976. Subject:- Public Deposits - Acceptance of Scope and provision of Companies (Acceptance of Deposits) Rules, 1975 explained Rule 2(d) : TREATMENT OF REPAYMENT OF LOANS SECURED BY MORTGAGE OF ASSETS EARLIER EXCLUDED FROM DEFINITION OF DEPOSITS BUT ARE INCLUDED NOW Query : What treatment should be given in respect of repayment of loans secured by mortgage of assets which were earlier excluded from the definition of deposits under the Non banking Non financial Companies (Reserve Bank) Directions, 1966, but which now under the Rules are included within the definition of deposit ? Answer : The amounts referred to in the first proviso to sub para (2) of para 3 of the Directions, were deposits within the meaning of para 2(f) though allowed to be accepted beyond the limits specified in sub para (2) of para 3. Hence, acceptance of such amounts when the Directions were in force, was acceptance of deposits in accordance with the Directions and hence, their repayment is governed by the provision of section 58A(3)(a).