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Microlesson · 5-min read

Return of Deposits, Penal Interest and Punishment for Contravention

## Return of Deposits (Form DPT-3)

  • Every company (other than government company) which has accepted deposits or has outstanding loan/money receipts must file an audited Return of Deposits in Form DPT-3 with the Registrar.
  • Due date: on or before 30th June of every year.
  • Information to be furnished: position as on 31st March of that year (Audited figures).

## Alteration in terms of deposit

  • A company cannot alter any terms or conditions of the deposit, deposit trust deed or security after circular/advertisement has been issued and deposits accepted, to the detriment of the depositor.

## Disclosure by Public Company

  • A public company must disclose in its financial statement money received from a director by way of loan, specifying that the money is not given out of borrowed funds (must come from owned funds, with declaration).

## Penal Interest on Delayed Repayment

  • Where a company fails to repay the deposit or interest on the due date, it shall pay penal interest @ 18% p.a. on the overdue amount for the period of default (in addition to the contracted rate).

## Punishment for Contravention (Section 76A read with Sections 73 and 76)

  • Company: Fine not less than ₹1 crore (or twice the amount of deposit accepted, whichever is lower), extending up to ₹10 crore.
  • Officer in default: Imprisonment up to 7 years AND fine of ₹25 lakh to ₹2 crore.
  • If the officer's act was wilful with intent to deceive, Section 447 (fraud) also applies.

Worked example

### Example 1

Example: Rainbow Ltd. accepted deposits of ₹5 lakh from its members on 1st January 2026, maturing on 31st December 2026 @ 10% p.a. The company failed to repay on the due date and finally repaid only on 31st March 2027. What interest must the company pay for the 3-month default period?

Answer: During the default period (1st Jan 2027 to 31st Mar 2027 = 3 months), the company shall pay penal interest at 18% p.a. on ₹5,00,000 = ₹5,00,000 × 18% × 3/12 = ₹22,500, in addition to repaying the principal and interest already due.

⚠️ Common exam mistakes

  • Filing DPT-3 with figures as on 31st March of the next year instead of 31st March of the year just ended.
  • Using the contracted deposit rate (e.g., 10%) for the default period instead of the statutory 18% penal rate.
  • Altering deposit terms to the detriment of depositors (e.g., reducing interest rate after acceptance) — this is prohibited.
  • Forgetting that for officers in default, punishment under Section 76A includes both imprisonment AND fine (not 'or').
Bare-Act text Section 76A · Companies Act, 2013 · click to expand
Where a company fails to repay the deposit or part thereof or any interest thereon under section 73 or section 76 or rules made thereunder or in accordance with the terms and conditions of such deposits, ... every officer of the company who is in default shall be punishable with imprisonment which may extend to seven years and with fine which shall not be less than twenty-five lakh rupees but which may extend to two crore rupees.
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