As per rule Nidhi Amendment Rules, 2019, neither you have obtained registration of NIDHI Company nor you have
filed NDH-4 (which is mandatory) whereas you have collected the deposits. Without having registration no company can
operate as a NIDHI company. Please explain.

Our reply:

Rule 3A of Nidhis Rules, 2014 deals with the requirement of filing of Form NDH-4, This Rule was effective vide notification dated July 01, 2019 issued by Ministry of Corporate Affairs of India.

The rule states :-

The Central Goverrrment, on receipt of application (in.Form NDH-4 along with fee thereon) of a public company for declaring it as Nidhi and on being satisfied that the company meets the requirements under these rules, shall notify the company as a Nidhi in the official Gazette:

Provided that a Nidhi incorporated under the Act on or after the commencement of the Nidhi (Amendment) Rules, 2019 shall file Form NDH-4 within sixty days from the date of expiry of :-

(a) one year from the date of its incorporation or

(b) the period up to which extension of time has been granted by the Regional Director under sub-rule (3) of rule 5:

Provided further that nothing in the first proviso shall prevent a Nidhi from filing Form NDH-4 before the period referred therein:

Provided also that that in case a company does not comply with the requirements of this rule, it shall not be allowed to file Form No. SH-7 (Notice to Registrar of any alteration of share capital) and Form PAS-3 (Return of Allotment).]

Filing of E-Form NDH-4 is a procedural requirement which need to be followed by Every Nidhi Company. This E-Form is purely for the purpose of ensuring compliance/eligibility of Nidhi Company which are required to be made within one year of incorporation of Nidhi Company.

There is no such provision in the Act or rule which states that Nidhi Company cannot commence business till the period this E-Form NDH-4 is not filed. E-Form INC-20A is for declaration of commencement of business and no company can commence its business unless INC-20A is filed with ROC.

Further, we want to inform you that this is a new requirement and earlier all the Nidhi companies were functioning without any NDH-4.

Further, ICSEVA Nidhi Limited was incorporated on August 11, 2020. And pursuant to the aforesaid rule 3A, company can file E-Form NDH-4 till October 10, 2021, i.e. Within 60 days from the expiry of one year of incorporation.