Section 637 of the Companies Act, 1956 – Power of central government or tribunal to accord approval, subject to conditions and to prescribe fees on application

NOTIFICATION NO. G.S.R. 113(E), DATED 28-2-2008

 

In exercise of the powers conferred by sub-section (1) of section 637 A of the Companies Act, 19.56 (1 of 1956), the Central Government hereby makes the following amendments in the notification of the Government of India in the erstwhile Ministry of Law, Justice and Company Affairs (Department of Company Affairs) number G.S.R. 555(E) dated the 26th July, 2001, published in the Gazette of India, Part II, section 3, Sub-section (i) dated the 26th July, 2001, namely :—

In the said notification, in clause (1), in sub-clause (d), in item (i), in the first proviso, for the Table, the following Table and the provisos shall be substituted, namely :—

“TABLE

Ratio of Net Owned Fund to Deposits (as on 31-3-2007)

Date by which the company was required to achieve the prescribed ceiling of 1:20

Extended date by which the company has to achieve the prescribed ceiling of 1:20

(a) Up to 1:20

31-3-2007

31-3-2007

(b) More than 1:20 but up to 1:30

31-3-2007

31-3-2009

(c) More than 1:30 and above

31-3-2007

31-3-2010—subject to the condition that the company achieves the ratio of 1:30 by 31-3-2009

Provided that the companies covered under (a) above should not accept fresh deposits or renew existing deposits if such acceptance or renewal leads to violation of the prescribed ratio and the companies covered under (b) and (c) should not accept fresh deposits or renew existing deposits till they achieve the prescribed ratio :

Provided further that no request for extension of date mentioned in the Table above shall be entertained from any company or their representative body and the continued violation of the prescribed ratio would attract penal provisions including de-notification of the defaulting nidhi companies”.

 

F. No. 4/2/2007-CL-VI]