(1) | An application for approval has been made in the Form No. 59 by the public company three months before the [eligible issue of capital]. | |
[Explanation.—For the purposes of this rule, "the eligible issue of capital" means an issue referred to in clause (i) of the Explanation to clause (xix) in sub-section (2) of section 80C or in clause (i) of the Explanation to clause (xvi) in sub-section (2) of section 88.] | ||
(2) | Every application shall be accompanied by the following documents, namely :— |
(a) | a copy of the certificate of incorporation under the Companies Act, 1956 (1 of 1956); | |
(b) | audited balance sheets and profit and loss account for three previous years immediately preceding the previous year in which the application is made : | |
Provided that where a company has been in existence for a period of less than three years, in that case that company may furnish balance sheet and profit and loss account for the period of its existence. |
(3) | Every such public company shall invest its total paid-up capital (hereinafter referred to as such capital) raised through equity issue or debentures in the following manner :— |
(i) | twenty-five per cent or more of such capital shall be invested in the infrastructure facility before the end of one year from the date of approval of the Board; | |
(ii) | the balance of such capital shall be invested within a period of three years from the date of approval. |
(4) | Every such public company shall submit a certificate from an accountant, as defined in the Explanation in sub-section (2) of section 288, specifying the amount invested in each year, from the date of approval of the Board. | |
(5) | The Board shall pass an order in writing granting approval or refusing approval to such public company, as the case may be : | |
Provided that no order refusing approval shall be passed by the Board before allowing an opportunity of being heard to the public company. | ||
(6) | The Board shall have the power to withdraw the approval granted under sub-rule (5) in the following circumstances, namely :— |
(a) | if such public company fails to make investments as per conditions mentioned in sub-rule (3); or | |
(b) | if such public company fails to file the certificate referred to in sub-rule (4). |