Legal & Compliance
Closure of Branch:
A Nidhi shall not close any branch unless:
It publishes an adver sement in a newspaper in vernacular language in the place where it carries on
business at least 30 days prior to such closure.
I nforming the public about such closure; fixes a copy of such adver sement or a no ce informing
such closure of the branch on the no ce board of Nidhi for a period of at least 30 days from the date
on which adver sement was published and
G ives in ma on to the Registrar within 30 days of such closure.
COMPLAINCE WITH REGISTRAR OF COMPANIES - RETURNS:
NDH -1
Within 90 days from the closure of the first financial year a er its incorpora on and where applicable,
the second financial year, Nidhi shall file a return of statutory compliances in Form NDH – 1 along with
such fee as prescribed with the Registrar duly cer fied by a Company Secretary in prac ce or a Chartered
Accountant in prac ce or a Cost Accountant in prac ce.
NDH -2
If the company is not complying with the above it shall within90 days from the close of the first
financial year, apply to the Regional Director in Form NDH -2 along with fee for extension of me and the
Regional Director may consider the applica on and pass orders within 30 days of the receipt of the
applica on.
NDH -3
The Nidhi Company shall filed Form NDH-3 within thirty days from the conclusion of each half year
duly cer fied by a company secretary in prac ce or chartered accountant in prac ce or cost accountant
in prac ce.
If there is failure the Nidhi shall not accept any further deposits from the commencement of the second
financial year ll it complies with the provisions besides being liable for penal consequences provided in
the Act.
PENALTY:
If a company contravenes any of the provisions of the rules the company and every officer of the
company who is in default shall be punishable with fine which may extend to Rs.5,000/- and where the
contraven on is a con nuing one, with a further fine which may extend to Rs.500/- for every day a er
the first during which the contraven on con nues.
www.Venture-Care.com/Magazine
October 2017
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