Clarification regarding Repayment of Deposits

MCA vide its circular dated  June 18, 2015 has clarified on repayment of deposits accepted before commencement of Companies Act, 2013.

Key highlights of the circular are as follows:

1. The deposit holder is free to file application to Company Law Board against the Company which has failed to repay the deposits.
2. The Company can file an application  to Company Law Board for extension of time in making repayment of deposits.
3. Companies can repay deposits accepted under the Companies Act, 1956 as per terms on which such deposit were accepted. There is no need to pre pay them.
4. Registrar of Companies has power to prosecute the Companies which have defaulted on repayment of deposits whether under the Companies Act, 1956 or the Companies Act, 2013.