The Central Government to decriminalise the violations involving minor technical and procedural defaults (shortcomings in CSR reporting, inadequacies in board report, filing defaults, delay in holding AGM) under the Companies Act.
In a press conference held on Sunday, the Minister for Finance and Corporate Affairs said that, Majority of the compoundable offenses sections to be shifted to internal adjudication mechanism (IAM) and powers of RD for compounding enhanced (58 sections to be dealt with under IAM as compared to 18 earlier).
The Finance Minister also said that, Seven compoundable offenses altogether dropped and 5 to be dealt with under the alternative framework. The Amendments will de-clog the criminal courts and NCLT.
The respective amendments will be notified in the coming days.
