As per the proposed amendment, the company would have to intimate the Company Law Board (CLB) on any default made by it in the repayment of the deposits or the interest rate within 60 days from the date of such default.

"The CLB will pass an appropriate order within 30 days after it receives the information of default by the company.

It will not be necessary for a small depositor to be present at the hearing of the proceeding," an official release said here on Wednesday. On the offence connected with acceptance of deposits, government would make the cognisable offence under the Criminal Procedure Code (CrPC), the release added. Powers had been given to CLB in case of default of repayments by non-banking finance companies (NBFCs) also. CLB could direct the company to make repayment of such deposits and a copy of which had to be sent to the Registrar of Companies (RoC) and the Reserve Bank of India (RBI), it said.

"Non-compliance of the CLB order entails punishment with imprisonment upto three years and also a fine," the release said.

(PTI)