Amended and updated notes on section 76A of Companies Act 2013. Detail discussion on provisions and rules related to punishment for contravention of section 73 or section 76.
Chapter V (Sections 73–76A) of the Companies Act, 2013 (CA 2013) deals with the provisions related to acceptance of deposits by companies. Section 76A of CA 2013 provides for punishment for contravention of section 73 or section 76.
Recently, we have discussed in detail section 76 (Acceptance of deposits from public by certain companies) of CA 2013. Today, we learn the provisions of section 76A of Companies Act 2013 read with the Companies (Acceptance of Deposits) Rules, 2014.
Section 76A of the Companies Act, 2013 has been newly inserted by the Companies (Amendment) Act, 2015 w.e.f. 29-05-2015. This amended Act was come into force from 29th May, 2015 i.e. the commencement date of section 76A is 29-5-2015.
| Name of Act | The Companies Act 2013 |
|---|---|
| Enacted by | Parliament of India |
| Administered by | Ministry of Corporate Affairs (MCA) |
| Number of Chapters | 29 |
| Number of Sections | 484 (470-43+57) |
| Number of Schedules | 7 |
| You are reading: | |
| Chapter No. | V |
| Chapter Name | Acceptance of deposits by Companies |
| Section No. | 76A |
| Section Name | Punishment for contravention of section 73 or section 76 |
| Monthly Updated Edition | Company Law PDF |
Section 76A of Companies Act 2013: Punishment for contravention of section 73 or section 76
Section 76A newly inserted by the Companies (Amendment) Act, 2015 w.e.f. 29-05-2015.
Where a company accepts or invites or allows or causes any other person to accept or invite on its behalf any deposit in contravention of the manner or the conditions prescribed under section 73 or section 76 or rules made thereunder or if a company fails to repay the deposit or part thereof or any interest due thereon within the time specified under section 73 or section 76 or rules made thereunder or such further time as may be allowed by the Tribunal under section 73, —
- (a) 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 or twice the amount of deposit accepted by the company, whichever is lower but which may extend to ten crore rupees; and
- (b) every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years and with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees,:
Provided that if it is proved that the officer of the company who is in default, has contravened such provisions knowingly or willfully with the intention to deceive the company or its shareholders or depositors or creditors or tax authorities, he shall be liable for action under section 447.