Section 73 of Companies Act,2013 (Urgent help required)

[Arunima Santuka]

Dear professionals,

Greetings!

There is a private company. The managing director of the company is the chairman of an educational society. The company wants to build a hostel and give it for lease to the same educational society. But it has to borrow funds from the society as a trade advance. My question is, will this trade advance be considered as a deposit under Section 2(31) of the Companies Act? 

I would really appreciate any help that is provided.

Regards,

Arunima Santuka.

[kanika sharma]

IN MY OPINION , IT WOULD BE EXEMPTED IF A COMPANY BORROWS MONEY WITHOUT INTEREST OR HELD IN TRUST , IT WOULD NOT BE COVERED UNDER THE DEFINATION OF DEPOSITS AS PER RULE 2 (XI) OF THE COMPANIES (ACCEPTANCE OF DEPOSITS)RULES, 2014.

BUT AS PER YOUR QUERY IS CONCERNED , IF THE COMPANY BORROWS FUNDS FROM SOCIETY REGISTERED UNDER THE SOCIETIES REGISTRATION ACT 1860, AS NOTHING ABOUT SOCIETY HAS BEEN COVERED UNDER THE DEFINATION OF DEPOSITS , SO THAT AMOUNT BORROWED BY THE COMPANY TREATED AS DEPOSITS.

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Thanks & Regards

 

 CS Kanika 

 JJRSIPL

 Gurgaon

[Arunima Santuka]

Dear Kanika Ma'am,

Thank you for your prompt response.

Regards,

Arunima Santuka.

Mob: 9668681815.

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[kanika sharma]

welcome dear . 

[ACS suresh chaudhary]

Right. read Deposit rules before taking money from someone

[Arunima Santuka]

Dear Suresh Sir,

Thank you for the reply.

Regards,

Arunima Santuka.

Mob: 9668681815.

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