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 net worth, 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.
Legal Commentary & Landmark Judgments: Section 76
Section 76 regulates the acceptance of public deposits by eligible public companies having net worth of at least one hundred crore rupees or turnover of at least five hundred crore rupees.
Eligible companies must create a charge over assets in favor of deposit trustees if deposits are secured, ensuring depositor claims are collateralized.
Section 76 enables established public companies to utilize public deposits as a working capital resource while subjecting them to credit rating scrutiny and deposit trust supervision. Default in repayment triggers immediate investigation by the ROC and MCA, disqualification of directors under Section 164(2), and astronomical fines under Section 76A running up to twenty-five crore rupees.