Under what circumstances can Banks remit winding up proceeds of Companies under liquidation as per Foreign Direct Investment-Regulation and Policy ?

Authorised Dealer (AD) Category-I banks have been allowed to remit winding up proceeds of companies in India, which are under liquidation, subject to payment of applicable taxes. Liquidation may be subject to any order issued by the Court winding up the company or the official liquidator in case of voluntary winding up under the provisions of the Companies Act, as applicable. AD Category-I banks shall allow the remittance provided the applicant submits: No objection or Tax clearance certificate from Income Tax Department for the remittance. Auditor's certificate confirming that all liabilities in India have been either fully paid or adequately provided for. Auditor's certificate to the effect that the winding up is in accordance with the provisions of the Companies Act, as applicable. In case of winding up otherwise than by a court, an auditor's certificate to the effect that there are no legal proceedings pending in any court in India against the applicant or the company under liquidation and there is no legal impediment in permitting the remittance.