Challenge on Unconstitutionality of Nidhi Rules 2014 as per Companies (Amendment) Act 2017: Madras HC directs to Submit Fresh Reply on Rectifying defects

The Madras High Court has addressed a challenge on the unconstitutionality of the Nidhi Rules, 2014, as amended by the Companies (Amendment) Act, 2017. The court has directed the petitioner to submit a fresh reply focusing on rectifying the defects in their original submission. This indicates the court's intent to delve into the substantive legal challenge regarding these rules, which govern Nidhi companies (mutual benefit societies). The Nidhi Rules aim to regulate these entities to protect depositors' interests. By asking for a rectified reply, the court is preparing to hear arguments on whether the amended rules are ultra vires the parent Act or violate constitutional provisions, signaling a significant case for the financial sector.