Section 73 — Prohibition on acceptance of deposits from public

(1) On and after the commencement of this
Act, no company shall invite, accept or renew deposits under this Act from the public except in a manner
provided under this Chapter:
Provided that nothing in this sub-section shall apply to a banking company and non-banking financial
company as defined in the Reserve Bank of India Act, 1934 (2 of 1934) and to such other company as the
Central Government may, after consultation with the Reserve Bank of India, specify in this behalf.
(2) A company may, subject to the passing of a resolution in general meeting and subject to such rules
as may be prescribed in consultation with the Reserve Bank of India, accept deposits from its members on
such terms and conditions, including the provision of security, if any, or for the repayment of such deposits
with interest, as may be agreed upon between the company and its members, subject to the fulfilment of the
following conditions, namely:—
(a) issuance of a circular to its members including therein a statement showing the financial position
of the company, the credit rating obtained, the total number of depositors and the amount due towards
deposits in respect of any previous deposits accepted by the company and such other particulars in such
form and in such manner as may be prescribed;
(b) filing a copy of the circular along with such statement with the Registrar within thirty days
before the date of issue of the circular;

1. Sub-section (11) omitted by Act 29 of 2020, s. 15 (w.e.f. 21-12-2020).

1[(c) depositing, on or before the thirtieth day of April each year, such sum which shall not be less
than twenty per cent. of the amount of its deposits maturing during the following financial year and
kept in a scheduled bank in a separate bank account to be called deposit repayment reserve account;]
2* * * * *
(e) certifying that the company has not committed any default in the repayment of deposits
accepted either before or after the commencement of this Act or payment of interest on,
3[such deposits and where a default had occurred, the company made good the default and a period of five
years had lapsed since the date of making good the default;] and
(f) providing security, if any for the due repayment of the amount of deposit or the interest thereon
including the creation of such charge on the property or assets of the company:
Provided that in case where a company does not secure the deposits or secures such deposits
partially, then, the deposits shall be termed as “unsecured deposits” and shall be so quoted in every
circular, form, advertisement or in any document related to invitation or acceptance of deposits.
(3) Every deposit accepted by a company under sub -section ( 2) shall be repaid with interest in
accordance with the terms and conditions of the agreement referred to in that sub-section.
(4) Where a company fails to repay the deposit or part thereof or any interest thereon under
sub-section (3), the depositor concerned may apply to the Tribunal for an order directing the company to
pay the sum due or for any loss or damage incurred by him as a result of such non -payment and for such
other orders as the Tribunal may deem fit.
(5) The deposit repayment reserve account referred to in clause (c) of sub-section (2) shall not be used