(4)If the failure to comply with sub-rule (1) of this rule extends beyond the second financial year, Nidhi shall not accept any further deposits from the commencement of the second financial year till it complies with the provisions contained in sub-rule (1) [and gets itself declared under sub-section (1) of section 406] [Inserted by Notification No. G.S.R. 467(E), dated 1.7.2019 (w.e.f. 31.3.2014).], besides being liable for penal consequences as provided in the Act.
