The Ministry of Corporate Affairs has warned people against parking savings in Nidhi companies, after it found that none of the firms that had applied so far to be recognised under relevant rules was compliant with the norms.
A large number of firms operating as Nidhi companies had not even applied for recognition under section 406 of the Companies Act, 2013 and the amended Nidhi Rules of 2014 and were thus in violation of the law, the Ministry said in a statement. “Of the 348... scrutinised, not a single company could satisfy the requisite criteria.”
