Section 76 — Acceptance of deposits from public by certain companies

(1) Notwithstanding anything
contained in section 73, a public company, having such net worth or turnover as may be prescribed, may
accept deposits from persons other than its members subject to compliance with the requirements provided
in sub-section (2) of section 73 and subject to such rules as the Central Government may, in consultation
with the Reserve Bank of India, prescribe:
Provided that such a company shall be required to obtain the rating (including its networth, liquidity
and ability to pay its deposits on due date) from a recognised credit rating agency for informing the public
the rating given to the company at the time of invitation of deposits from the public which ensures adequate
safety and the rating shall be obtained for every year during the tenure of deposits:
Provided further that every company accepting secured deposits from the public shall within thirty days
of such acceptance, create a charge on its assets of an amount not less than the amount of deposits accepted
in favour of the deposit holders in accordance with such rules as may be prescribed.
(2) The provisions of this Chapter shall, mutatis mutandis, apply to the acceptance of deposits from
public under this section.
1[76A. Punishment for contravention of section 73 or section 76. —Where a company accepts or
invites or allows or causes any other person to accept or invite on its behalf any deposit in contravention of
the manner or the conditions prescribed under section 73 or section 76 or rules made thereunder or if a
company fails to repay the deposit or part thereof or any interest due thereon within the time specified under
section 73 or section 76 or rules made thereunder or such further time as may be allowed by the Tribunal
under section73,—
(a) the company shall, in addition to the payment of the amount of deposit or part thereof and the
interest due, be punishable with fine which shall not be less than 2[one crore rupees or twice the amount
of deposit accepted by the company, whichever is lower] but which may extend to ten crore rupees;
and
(b) every officer of th e company who is in default shall be punishable with imprisonment which
may extend to 3[seven years and with fine] which shall not be less than twenty -five lakh rupees but
which may extend to two crore rupees, 4***:
Provided that if it is proved that the o fficer of the company who is in default, has contravened such
provisions knowingly or wilfully with the intention to deceive the company or its shareholders or depositors
or creditors or tax authorities, he shall be liable for action under section 447.]