Winding up of Indian companies - remittance – RBI Clarifies
As per the existing regulations, remittance out of the assets of Indian companies under liquidation require the permission of Reserve Bank of India. As a measure of simplification, RBI has now delegated this power to AD Category-1 banks subject to the following conditions:-
(i) The remittance is in compliance with the orders of a court/official liquidator.
(ii) No objection certificate is obtained from the Income Tax Authorities.
(iii) Auditor’s certificate that liabilities in India are fully paid or provided for, is produced.
(iv)Auditor’s certificate that winding up is as per the Companied Act, is produced.
(v) Auditor”s certificate to the effect that no legal proceedings are pending in any court in India, is produced.
RBI Circular No. 65/2007, Dated May 31, 2007