Power of Central Government or Company Law Board to accord approval, etc. - Nidhis/Mutual Benefit Society - Amendments in Notification No. GSR 603(E), dated 20-10-1997 - GSR 85(E), - Companies Law

NOTIFICATION NO. GSR 85(E), DATED 23-2-1998, ISSUED BY THE DEPARTMENT OF COMPANY AFFAIRS, MINISTRY OF FINANCE Subject:- Power of Central Government or Company Law Board to accord approval, etc. - Nidhis/Mutual Benefit Society - Amendments in Notification No. GSR 603(E), dated 20-10-1997 GSR 85(E).- In exercise of the powers conferred by sub-section (1) of section 637A of the Companies Act, 1956 (1 of 1956), the Central Government hereby amends the notification of the Government of India in the Ministry of Finance (Department of Company Affairs) number G.S.R. 603(E) dated the 20th October, 1997 [(1997) 14 SCL 200 (St.)] and directs that the following amendments shall be made therein, namely : In the said notification, in paragraph 1, in item (a) for sub-item (ii), the following sub-item shall be substituted, namely : "(ii) give to any borrower loans or advances exceeding, (A) two lakhs rupees, where the total amount of deposits of such Nidhi or Mutual Benefit Society from its members are two crores rupees or less; (B) one per cent of the total deposits or seven lakhs fifty thousand rupees, whichever is less, where deposits of such Nidhi or Mutual Benefit Society from its members are more than two crores rupees but are twenty crores rupees or less; (C) twelve lakhs rupees, where the deposits of such Nidhi or Mutual Benefit Society from its members are more than twenty crores rupees but are fifty crores rupees or less; (D) fifteen lakhs rupees, where the deposits of such Nidhi or Mutual Benefit Society from its members are more than fifty crores rupees : Provided that no Nidhi or Mutual Benefit Society shall give to any borrower loans and advances exceeding seven lakhs fifty thousand rupees if such Nidhi or Mutual Benefit Society had not made profits in the three preceding years."