AN NBFC takes inter corporate loan from a private limited/limited concern say company no. 1 @12% p.a. and gives it to another private limited/limited say company no. 2 @ 15.30 p.a. Suppose company no. 2 is associate/subsidiary/holding company of No. 1 company or any director of company No.1 is interested in company no. 2 or vice versa. Now query no. 1. is there any violation of rules according to companies act 2013 in giving loan to company no 2 by NBFC by taking loan from company no. 1 ? Now query no. 2 is there any violation of rules according to companies act 2013 if NBFC takes guarantee also from company No. 1 for giving loan to company no. 2?
1. Yes, i find this sub loaning by the said N.F.B.C. of the loan taken from a pvt ltd company No. 1 to one of the subsidiaries company No. 2 of such pvt.Ltd company as illegal act and such act is certainly a breach of the provisions contained in the Company Act 2013.
2. The relevant fact that such N.B.F.C. has taken a guarantee from company No.1 that they would not object to such act of the said N.B.F.C. of re-loaning such loan taken by the said N.B.F.C.as a loan to company No. 2 by such N.B.F.C. can be seen as an attempt to create fraudulent accounting procedures for wrongful gains especially if one of the director of company No. 1 is associated with the establishment of company No.2. .
3. This matter needs to be checked with a professional Company Secretary personnel.
4. I must know as how are you coming into such picture.
5. If need be opt for post paid phone consultation with this lawyer by confirmation through e-mail.