Section 76A The Companies Act, 2013

Section 76A The Companies Act, 2013

Punishment for contravention of section 73 or section 76.

76A. 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 2[one crore rupees or twice the amount of deposit accepted by the company, whichever is lower] rupees 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 3[seven years and with fine] which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees, 4[Omitted]:

Provided that if it is proved that the officer of the company who is in default, has contravened such provisions knowingly or wilfully 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.]

Amendment

1. Inserted by Companies (Amendment) Act, and is effective from 29th May 2015.

2. Substituted by the Companies (Amendment) Act, 2017 :- Effective From 09th February 2018

In Section 76A, clause (a),

for the words ““one crore rupees”,

the following words shall be substituted, namely :-

“one crore rupees or twice the amount of deposit accepted by the company, whichever is lower”

3.Substituted by the Companies (Amendment) Act, 2017

In Section 76A clause (b),

for the words “ seven years or with fine”,

the following words shall be substituted, namely :-

“seven years and with fine”

4.Omitted by the Companies (Amendment )Act,2017 ;– Effective From 09th February 2018

Original Omitted Content- “or with both”