Tarun deposited ₹ 1,00,000 in April 2018 with F Ltd., an unlisted public company carrying on manufacturing operations for a term of 3 years. Tarun seeks your advice on the following: (a) Tarun has an emergency in Novembe

Rule 15 of the Companies (Acceptance of Deposits) Rules, 2014 provides that where a company makes a repayment of the deposits on the request of the depositor, after the expiry of 6 months but before the expiry of the period for which such deposits was accepted, the rate of interest payable on such deposit shall be reduced by the one percent from the rate which the company would have paid had the deposits been accepted for the period for which it has actually run and the company shall not pay interest at any rate higher than the rate so reduced. (a) Withdrawal due to emergency: Since, Tarun is seeking a withdrawal of his Deposit after expiry of six months from the date of deposit, he is entitled to get an interest @ 1% less than the rate which the company would have paid had the deposits been accepted for the period for which it has actually run. (b) Deposit scheme declared invalid: The above provision will not apply where the company is forced to refund the deposits due to non-compliance with the provision of rule 3, which includes the limit of the brokerage to be paid as fixed by the Reserve Bank of India. As F Ltd has violated the maximum rate of brokerage fixed, the company has to return the deposits without any deduction in the interest rate of amount.