Section 75 of the Companies Act, 2013
Section 75 of the Companies Act, 2013 deals with Damages for Fraudulent Repayment of Deposits.
📘 Section 75 – Damages for Fraudulent Repayment of Deposits
1. Where a company accepts deposits and:
Fails to repay the deposit or part thereof within the time specified in the Companies Act or any rules made thereunder or as per the terms of the deposit; and
It is proved that the company intended to defraud the depositors or for any fraudulent purpose,
then every officer of the company who was responsible for the acceptance of such deposits shall be personally liable, without any limitation of liability, for all or any of the losses or damages incurred by the depositors.
2. Such officers may also be punished under Section 447 (which deals with punishment for fraud).
✅ Key Points:
Covers fraudulent deposit activities.
Imposes personal liability on defaulting officers.
Includes civil and criminal consequences.
Invokes Section 447 for punishment, which can mean imprisonment and fine depending on the amount involved.
📝 Example:
If a company takes money as a deposit promising to return it in 6 months, but fails to do so and it is found that the intent was fraudulent, then the officer(s) responsible can be made personally liable and punished under fraud laws.
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