26 September 2008
In case of Cash Credit and OD A/c's (Stock) what amounts to Diversion of Funds. Whether transfer in Savings or Current Accounts and to what extent. And also how much cash withdrawal dosn't come within the definition of Diversion of Funds.
26 September 2008
If the funds withdrwn from cash credit is used for long term purposes and such withdrawals are more than the internal accruals credited to the CC account, then diversion of funds results. It simply means use of short term funds for long term purposes.
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