Provision relating to Nidhis and its application, etc
Section 406 of the Companies Act, 2013 deals with provision relating to Nidhis and its application, etc. In this section, "iNidhi" or "Mutual Benefit Society" means a company which the Central Government may, by notification in the Official Gazette, declare to be a Nidhis or Mutual Benefit Society, as the case may be. The Act came into force on 01 Apr 2014.
1[406. Provision relating to Nidhis and its application, etc.--(1) In this section, "iNidhi" or "Mutual Benefit Society" means a company which the Central Government may, by notification in the Official Gazette, declare to be a Nidhis or Mutual Benefit Society, as the case may be.
(2) The Central Government may, by notification in the Official Gazette, direct that any of the provisions of this Act specified in the notification--
(a) shall not apply to any Nidhis or Mutual Benefit Society; or
(b) shall apply to any Nidhis or Mutual Benefit Society with such exceptions, modifications and adaptations as may be specified in the notification.
(3) A copy of every notification proposed to be issued under sub-section (2), shall be laid in draft before each House of Parliament, while it is in session, for a total period of thirty days, and if, both Houses agree in disapproving the issue of notification or both Houses agree in making any modification in the notification, the notification shall not be issued or, as the case may be, shall be issued only in such modified form as may be agreed upon by both the Houses.
(4) In reckoning any such period of thirty days as is referred to in sub-section (3), no account shall be taken of any period during which the House referred to in sub-section (3) is prorogued or adjourned for more than four consecutive days.
(5) The copies of every notification issued under this section shall, as soon as may be after it has been issued, be laid before each House of Parliament.]
Section 406, The Companies Act, 2013 (Act 18 of 2013).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
Referred to by 5
- Income-tax Act s. 2 Definitions
- Income-tax Rules s. 114B [Transactions in relation to which permanent account number is to be quoted in all documents for the purpose of clause (c) of sub-section (5) of section 139A
- Income-tax Rules s. 114E [Furnishing of statement of financial transaction
- Income-tax Rules s. 159 Transactions in relation to which Permanent Account Number is to be quoted or applied for purposes of section 262(1)(f) and 262(10)(c) and (e)
- Income-tax Rules s. 237 Furnishing of statement of financial transaction
Judgments citing this section
These may be obiter dicta or a precedent, for you to study. These are the judgments where this section is quoted.
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… referred to in section 51 of that Act). - A time deposit with, - a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); - a Post Office; - a Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); or - a non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public. - Payment for one or more pre-paid payment instruments, as defined in the policy …
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… referred to in section 51 of that Act). - A time deposit with, - a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); - a Post Office; - a Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); or - a non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public. - Payment for one or more pre-paid payment instruments, as defined in the policy …
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… referred to in section 51 of that Act). - A time deposit with, - a banking company or a co-operative bank to which the Banking Regulation Act, 1949 (10 of 1949), applies (including any bank or banking institution referred to in section 51 of that Act); - a Post Office; - a Nidhi referred to in section 406 of the Companies Act, 2013 (18 of 2013); or - a non-banking financial company which holds a certificate of registration under section 45-IA of the Reserve Bank of India Act, 1934 (2 of 1934), to hold or accept deposit from public. - Payment for one or more pre-paid payment instruments, as defined in the policy …
Made under this section, and citing it
4 instruments state that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 4 instruments name this provision in its title or its text without being made under it.
Questions about Section 406
What does Section 406 of the Companies Act deal with?
Section 406 of the Companies Act is headed "Provision relating to Nidhis and its application, etc". [406. Provision relating to Nidhis and its application, etc.--(1) In this section, "iNidhi" or "Mutual Benefit Society" means a company which the Central Government may, by notification in the Official Gazette, declare to be a Nidhis or Mutual Benefit Society, as the case may be.
How do I find court cases under Section 406 of the Companies Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Companies Act 406, section 406 Companies Act, section 406 of the Companies Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.
What should I read with Section 406 of the Companies Act, and has it changed?
5 other provisions in this corpus refer back to it. The rules and notifications made under it are where it actually bites, and there are 4: most recently NIDHI (Amdt) Rules 2020 (2020), then NIDHI (Second) Amendment Rules 2020 (2020), and 2 more.
When did Section 406 of the Companies Act come into force?
Section 406 of the Companies Act, cited as Companies Act 406, came into force on 01 Apr 2014, having been enacted on 29 Aug 2013. It is in force as at the date shown on this page.
Other sections of this Act
- 2. Definitions5089 words
- 143. Powers and duties of auditors and auditing standards1867 words
- 230. Power to compromise or make arrangements with creditors and members1432 words
- 232. Merger and amalgamation of companies1416 words
- 149. Company to have Board of Directors1403 words
- 217. Procedure, powers, etc., of inspectors1390 words
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.