New Delhi, Sept. 24 -- The Ministry of Corporate Affairs (MCA) on Thursday cautioned the public against depositing money in Nidhi Companies promising unusually high returns, after finding that several such companies were not complying with regulatory requirements.

In an advisory, the ministry said that during the examination of applications submitted by Nidhi Companies, it observed that several companies were not fully complying with applicable laws and rules.

It also found that many companies operating as Nidhi Companies had failed to submit the mandatory NDH-4 application within the prescribed time.

Every company seeking to operate as a Nidhi is required to file Form NDH-4 to obtain or update its declaration as a Nidhi from the Centr...