Decide whether the following transactions will fall within the ambit of "deposits" as defined under the Companies Act, 2013, quoting relevant provisions of the Act : (a) Great Ltd. received an application money of ₹5 lak

The definition of deposits as per Rule 2 (c) of the Companies (Acceptance of Deposits) Rules, 2014, prescribes that 'deposit' includes any receipt of money by way of deposit or loan or in any other form, by a company. Deposit does not include any amount received and held pursuant to an offer made in accordance with the provisions of the Act towards subscription to any securities, including share application money or advance towards allotment of securities pending allotment, so long as such amount is appropriated only against the amount due on allotment. If the securities for which application money or advance for such securities was received cannot be allotted within 60 days from the date of receipt of the application money or advance for such securities and such application money or advance is not refunded to the subscribers within 15 days from the date of completion of 60 days, such amount shall be treated as a deposit. [Rule 2 (c)(vii)] In the instant case, the application money has been received on 1st January, 2017 and till date neither the allotment nor refund of the application money has been made. Further, 60 days of receipt of application money have already elapsed; hence the amount shall be treated as deposit.