Case Digest of Penalty on Directors

Directors play an important role in a company, ensuring compliance with legal and regulatory requirements under the Companies Act, 2013. Any failure to meet these obligations can attract penalties, fines, or even imprisonment under the oversight of the Ministry of Corporate Affairs (MCA).

Common Penalties on Directors

1. Furnishing False Information (Section 7 & 8): Directors who provide false information during incorporation or fraudulently misrepresent details in company registration can be penalized under Section 447 for fraud. This may result in imprisonment and fines extending to Rs. 50 lakh.

2. Non-Compliance with Annual Filings (Section 92 & 137): Companies must file their Annual Returns (MGT-7) and Financial Statements (AOC-4) within the prescribed time. Failure to comply can result in a fine of Rs. 10,000, increasing by Rs. 100 per day (up to Rs. 2 lakh for companies and Rs. 50,000 for directors).

3. Failure to Maintain a Registered Office (Section 12): Every company must have a registered office for official communication. If the office is not maintained, the company and its directors may be fined Rs. 1,000 per day, up to Rs. 1 lakh.

4. Non-Filing of DIR-3 KYC: Directors must update their Director Identification Number (DIN) KYC annually. Non-compliance results in: A penalty of Rs. 5,000 per director and DIN deactivation.

5. Failure to Hold Board Meetings & AGMs (Section 173 & 99): Companies must hold Board Meetings and Annual General Meetings (AGMs) as per legal requirements. Failure can lead to: A company fine of Rs. 1 lakh, plus Rs. 5,000 per day of delay for directors.

6. Failure to Repay Deposits (Section 74 & 76A): If a company fails to return public deposits, directors can face imprisonment up to 7 years or a fine between Rs. 25 lakh and Rs. 2 crore

7. Fraud & Misrepresentation (Section 447 & 448): If a director is involved in fraudulent activities, misstatements, or misleading financial reports, the penalty includes:

• Imprisonment from 6 months to 10 years
• A fine of at least the amount of fraud, up to 3 times the amount

8. Non-Compliance with Corporate Social Responsibility (CSR) (Section 135): Companies failing to spend on CSR as required by law may face:

• A penalty of twice the unspent amount or Rs. 1 crore (whichever is less)
• Directors may be fined Rs. 2 lakh each

9. Violation of Director Disqualification Rules (Section 164): A director may be disqualified if a company fails to file financial statements for three consecutive years. This results in automatic five-year disqualifications from directorship.

Failure to File Copy of Financial Statement u/s 137 of Companies Act: MCA imposes Penalty on Company and Board of Directors

In a recent adjudication by the Ministry of Corporate Affairs (MCA), the Registrar of Companies imposed a penalty of Rs. 3.3 lakhs on a company and its board of directors for failing to file a copy of the financial statement as required by Section 137 of the Companies Act. Registered in Varanasi, Uttar Pradesh, the company had not filed its financial statements for the fiscal years 2020 and 2021, resulting in a non-compliance issue. The inquiry revealed that both the company and its directors failed to adhere to Section 137, attracting the penal provisions under Section 137(3).

Despite being issued a Show Cause Notice, the company and its officers did not respond, leading to no hearing on the matter. Considering the circumstances, the Registrar imposed the penalty as per Section 137(3), directing the amount to be paid via e-payment within 90 days.

MCA Imposes Penalty on Company, its Directors for Failing to Maintain Registered Office

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC) in Uttar Pradesh, has penalized a limited company and its directors for violating Sections 12(1) and 12(4) of the Companies Act, 2013. The company, incorporated on July 20, 2022, failed to maintain a registered office and did not inform the authorities about any changes. The issue surfaced when the MCA rejected the company's NDH-4 form and sent a notice on May 29, 2023, which was returned undelivered, indicating non-compliance with Section 12 of the Act.

Under Section 12(8), failing to maintain a registered office attracts a penalty of Rs. 1,000 per day, with a maximum limit of Rs. 1 lakh for both the company and its defaulting officers. Since neither the company nor its directors responded to the notice, the adjudicating officer confirmed the default and directed them to pay the penalty within 90 days via e-payment on the MCA portal.

MCA Penalizes Private Company & Directors for 527-Day Delay in Filing e-Form BEN-2

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty on a private limited company and its directors for failing to file e-Form BEN-2 within the stipulated timeframe, violating Section 90(4) of the Companies Act, 2013. The company delayed the filing by 527 days, citing reasons such as a lack of coordination between directors, the Covid-19 situation, and changes in directorship. However, the adjudicating authority determined that the delay was significant, warranting penal action.

As neither the company nor its directors appeared for the hearing, the MCA imposed a penalty of Rs. 6.6 lakhs collectively on the company and its three directors. The order mandated that each penalty amount be paid individually via e-payment on the MCA portal within 90 days.

Failure to Declare Beneficial Ownership: MCA Imposes Penalty of Rs. 7 Lakhs on Private Company & Directors

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty of Rs. 7.35 lakhs on a private limited company and its directors for failing to declare the significant beneficial owner, violating Section 90 of the Companies Act, 2013. The company, 99% owned by Chinese national Mr. Zhenghua Li, was under scrutiny following an inquiry report submitted on November 11, 2022, recommending its winding up under Sections 271 and 272.

Despite multiple notices from the MCA, the company failed to file e-Form BEN-2 or respond to official communications, confirming non-compliance. The adjudicating authority noted that the company and its directors neither replied to the notices nor attended the hearing. Consequently, a total penalty of Rs. 7 lakhs was imposed on both the company and its three directors. Under Section 454(3)(b), the company was directed to identify all significant beneficial owners and file e-Form BEN-2 within 90 days.

MCA Imposes ₹4 Lakh Penalty on Company for Not Maintaining Registered Office u/s 12 of Companies Act

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC) in Uttar Pradesh, imposed a penalty of Rs. 4 lakh on Ummid Mutual Benefit Nidhi Limited and its directors for failing to maintain a registered office, violating Section 12(1) of the Companies Act, 2013. The company, incorporated on March 15, 2017, was found non-compliant when a letter sent to its registered office was returned undelivered, indicating that the company did not exist at the provided address.

Despite a show cause notice issued on March 4, 2024, neither the company nor its directors responded, leading to penalties under Section 12(8). As per the provisions of the Act, the company and each of its three directors were fined Rs. 1,00,000, bringing the total penalty to Rs. 4,00,000. The penalty must be paid via the MCA21 portal within 90 days, and the company is required to file Form INC-28 with proof of payment.

MCA Imposes Rs. 8 Lakh Penalty on Company & Directors for Delay in Filing e-Form BEN-2

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a Rs. 8 lakh penalty on a private limited company and its directors for delayed filing of e-Form BEN-2, violating Section 90 of the Companies Act, 2013. Despite a notice issued on February 13, 2024, the company failed to respond, leading to a Show Cause Notice on April 26, 2024.

The company eventually filed the form on May 17, 2024, with a late fee of Rs. 7,800, but the adjudicating authority found it non-compliant. Under Section 90(10), penalties were imposed on both the company and its three directors. The amount must be paid via e-payment on the MCA website within 90 days.

Company Faces Penalty from MCA for Non-Compliance with Borrowing Resolution Requirements

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty on a private limited company and its directors for failing to comply with borrowing resolution requirements under Section 180(1)(c) of the Companies Act, 2013. The company, incorporated in 2005 with a paid-up capital of Rs. 8.49 crores, did not pass a special resolution for certain borrowings or file Form MGT-14.

Despite a show cause notice and summons, the company did not respond, leading to violations under Sections 117(1) and 117(3), making it liable for penalties under Section 117(2). The adjudicating officer confirmed the penalties on both the company and its directors.

Failure to Constitute Audit & Remuneration Committee Despite Loan Breach: MCA Imposes Penalty

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty on a private limited company and its directors for failing to constitute an audit and remuneration committee despite exceeding loan limits. The company, incorporated in 2005 with a paid-up capital of Rs. 8.49 crores, breached loan limits under Rule 4(iii) of the Companies (Appointment and Qualification of Directors) Rules, 2014, requiring compliance under Sections 177 and 178 of the Companies Act, 2013.

Despite a show cause notice and summons, the company did not respond, leading to violations under Section 178(8), making it liable for penalties. The adjudicating officer confirmed penalties on both the company and its directors.

Non-Filing of Annual Returns for 2 Consecutive Years: MCA Imposes Penalty on Company & Directors

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty on a private limited company and its directors for failing to file annual returns for the financial years 2019-20 and 2020-21. The company, registered under the Companies Act, 2013, with an authorized capital of Rs. 11 lakhs, did not submit its annual returns within the stipulated 60-day period, violating Section 92 of the Companies Act.

The adjudicating officer determined that the company and its directors were liable for penalties under Section 92(5). The penalties were imposed on both the company and its directors, as outlined in the order.

Non-Filing of MGT-14 for 3 Financial Years: MCA Imposes Penalty on Company and 3 Directors

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty on a private limited company and its directors for failing to file e-Form MGT-14 for the financial years 2017-18 to 2019-20. The company, registered under the Companies Act, 2013, with an authorized capital of Rs. 20 lakhs, did not file the required form for the approval of accounts, violating Section 117 of the Companies Act.

Despite receiving a show cause notice, the company and its directors failed to respond within the prescribed 15-day period, leading to penalties. The adjudicating officer confirmed the violations and imposed penalties on both the company and its four directors.

Non-Mentioning of DIN in Financial Statements: MCA Imposes Penalty on Company and 3 Directors

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty on a private limited company and its directors for failing to mention Director Identification Numbers (DIN) in financial statements for multiple years (2016-2021). The company, registered under the Companies Act, 2013, with an authorized capital of Rs. 15 lakhs, violated Section 158 of the Act.

Despite a show cause notice issued on April 25, 2024, neither the company nor its directors responded, leading to penalties under Section 172. The adjudicating officer confirmed the violations and imposed penalties on both the company and its three directors.

Company Fails to Obtain Shareholders’ Approval for Major Related Party Transactions: MCA Imposes Penalty

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty of Rs. 10 lakhs on a private limited company and its directors for failing to obtain shareholder approval for major related party transactions. The company, registered under the Companies Act, 2013, with an authorized capital of Rs. 2 crores, engaged in related party transactions with Kangyin Electronics Private Limited under Section 188 but only obtained board approval, violating Rule 15(3)(a) of the Companies (Meetings of Board and its Powers) Rules, 2014.

Despite a Show Cause Notice issued on June 4, 2024, the company's explanation that transactions were conducted at arm’s length was not accepted. The adjudicating officer determined non-compliance with Section 188(1) and imposed penalties on both the company and its directors.

Company & Directors Face Penalty from MCA for Non-Compliance with DIN Disclosure in Financial Statements

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a total penalty of Rs. 18 lakhs on a company and its directors for failing to mention Director Identification Numbers (DIN) in financial statements for three consecutive years (2016-2019). The company, registered under the Companies Act, 2013, with an authorized capital of Rs. 10 lakhs, violated Section 158 of the Act by omitting the DIN under directors’ signatures.

The adjudicating officer confirmed that a penalty of Rs. 6 lakhs was imposed for each defaulting financial year. Penalties were levied on both the company and its directors for non-compliance.

MCA Penalizes Director for Incomplete Disclosure of Interests

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty of Rs. 1 lakh on a director for failing to fully disclose his directorships, violating Section 184(1) of the Companies Act, 2013. The company, registered under the Act with an authorized capital of Rs. 2 crores, was found non-compliant during an inquiry. The director, Mr. Mohammad Usman, disclosed his interests in two companies but omitted his directorship in YTL Manufacturing Private Limited, effective from October 9, 2018.

The adjudicating officer determined that this omission constituted a violation, making him liable for penalties under Section 184(4) for the financial year 2018-19. A maximum penalty of Rs. 1 lakh was imposed as per the provisions of the Act.

MCA Imposes Rs. 8 Lakh Penalty on Private Limited Company for Not Declaring Significant Beneficial Owner

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty of Rs. 8 lakhs on a private limited company for failing to declare a significant beneficial owner under Section 90 of the Companies Act, 2013. The company, primarily owned by Mr. Zeng Shanghai (99.99%), did not file e-Form BEN-2, despite an inquiry report submitted on June 28, 2022, and a notice issued on February 15, 2024.

A Show Cause Notice was sent on April 26, 2024, with a hearing on May 10, 2024, but neither the company nor its representatives responded. The adjudicating officer determined that the company should have issued BEN-4 to identify its Significant Beneficial Owner, leading to penalties under the Act. A Rs. 5 lakh penalty was imposed on the company, while Rs. 1 lakh each was charged to its three directors.

Deactivation of DIN Due to Non-Filing of DIR-3-KYC: MCA Imposes Penalty of Rs. 50,000 on Director

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty of Rs. 50,000 on a director for failing to file DIR-3-KYC, leading to the deactivation of his Director Identification Number (DIN). The director, Mr. Durlabh Darshan Sharma of Shri Ram Nidhi Limited, did not comply with Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, violating Section 450 of the Companies Act, 2013.

The adjudicating officer determined the non-compliance and imposed the penalty accordingly. The director must pay the penalty via e-payment on the MCA website within 90 days. Non-compliance may attract further action under Section 454(8) of the Companies Act, 2013.

MCA Imposes Penalty on Private Limited Company and its Directors for Non-Filing of Financial Statements for 5 Consecutive Years

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty on a private limited company and its directors for failing to file financial statements for five consecutive years (2017-2021).

The company, registered under the Companies Act, 2013, with an authorized capital of Rs. 20 lakhs, violated Section 137 by not submitting financial statements within the required timeframe. The adjudicating officer determined non-compliance and imposed penalties under Section 137(3) of the Act on both the company and its directors.

Failure to Maintain Registered Office by Company: Penalty Imposed by MCA on Company and Directors

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty of Rs. 4 lakhs on a private limited company and its directors for failing to maintain a registered office, violating Section 12 of the Companies Act, 2013. The company, registered under the Act with an authorized capital of Rs. 10 lakhs, did not respond to an inquiry notice issued on November 23, 2020. The notice was returned undelivered with the remark “Left Address,” confirming non-compliance.

Despite a show cause notice, neither the company nor its officers furnished a reply. The adjudicating officer determined a violation under Section 12(8) and imposed penalties on the company and its three directors.

Non-Filing of Annual Returns: MCA Imposes Penalty on Private Limited Company and its Directors

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty on a private limited company and its directors for failing to file annual returns for five consecutive years. The company, registered under the Companies Act, 2013, with an authorized capital of Rs. 20 lakhs, did not submit its annual returns within 60 days of the AGM, violating Section 92 of the Act. Despite a show cause notice issued on March 18, 2024, neither the company nor its directors responded.

The adjudicating officer determined non-compliance under Section 92(5) and imposed penalties on both the company and its directors. The penalties for financial years 2016-17 and 2017-18 amounted to Rs. 4 lakhs each, with similar penalties for subsequent years. Non-compliance may lead to further action under Section 454(8) of the Companies Act, 2013.

MCA Imposes Penalty on Private Limited Company and Directors for Non-Filing of MGT-14

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty of Rs. 4 lakhs on a private limited company and its directors for failing to file e-Form MGT-14 for five consecutive years (2015-2021). The company, registered under the Companies Act, 2013, with an authorized capital of Rs. 20 lakhs, did not file the required form for approval of accounts, violating Section 117 of the Act.

Despite a show cause notice, the company and its directors failed to respond, leading to penalties. The adjudicating officer determined non-compliance and imposed penalties on both the company and its four directors.

MCA Imposes Rs. 3 Lakh Penalty on Private Limited Company & Directors for Failure to Maintain Registered Office

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty of Rs. 3 lakhs on a private limited company and its directors for failing to maintain a registered office, violating Section 12 of the Companies Act, 2013. The company, incorporated in 2007, was found non-compliant during a physical inquiry when officials discovered that the registered office was not maintained at the stated address.

A Show Cause Notice issued on August 9, 2024, was returned undelivered, confirming the violation. As no response was received from the company or its directors, the adjudicating officer imposed penalties under Section 12(8) of the Act.

Failure to Regularize Additional Director by Company: MCA Imposes Penalty on Company and Directors

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty of Rs. 6 lakhs on a private limited company and its directors for failing to regularize an additional director. The company, registered under the Companies Act, 2013, with an authorized capital of Rs. 10 lakhs, appointed Mr. Kuwar Bahadur as an additional director on February 25, 2017, but did not regularize his position, violating Section 161(1) of the Act.

Despite a Show Cause Notice issued on June 11, 2024, no response was received from the company or its officers. The adjudicating officer found the company and its directors liable under Section 172 and imposed penalties accordingly.

Non-Compliance with Beneficial Ownership Disclosure under Companies Act: MCA Imposes Penalty on Private Limited Company & Directors

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty of Rs. 7.35 lakhs on a private limited company and its directors for failing to disclose beneficial ownership under Section 90 of the Companies Act, 2013. The company, primarily owned by Mr. Chen Jufeng (99%), did not file e-Form BEN-2, despite an inquiry report submitted on November 22, 2022, and a reminder issued on February 15, 2024.

With no response to a Show Cause Notice issued on May 21, 2024, and failure to appear for a hearing on May 31, 2024, the adjudicating officer confirmed non-compliance. The company’s failure to issue Form BEN-4 and obtain necessary declarations led to penalties imposed on both the company and its directors.

Failure to File Copy of Financial Statements: MCA Imposes Penalty on Private Limited Company & Directors

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty on a private limited company and its directors for failing to file financial statements since incorporation. The company, registered under the Companies Act, 2013, with an authorized capital of Rs. 10 lakhs, was found non-compliant following complaints from the Reserve Bank of India (RBI). The adjudicating officer determined violations under Section 137(3) of the Companies Act.

Despite a show cause notice and an opportunity for an e-hearing on December 17, 2024, no response was received. Consequently, penalties were imposed on both the company and its directors. Non-compliance may lead to further action under Section 454(8) of the Companies Act, 2013.

MCA Imposes Penalty on Listed Company for Failure to Appoint Woman Director

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty of Rs. 3.13 lakhs on TPI India Limited for failing to appoint a woman director, violating Section 149(1) of the Companies Act, 2013. As a listed company on the Bombay Stock Exchange since December 26, 2000, it was required to fill the vacancy within three months after Mrs. Darshana Bharat Parekh stepped down on November 13, 2021.

The company delayed compliance, appointing Ms. Anjali Sapkal only on January 15, 2023. The adjudicating officer considered the non-compliance period from February 13, 2022, to January 15, 2023, and imposed penalties on both the company and its directors.

Failure to File Annual Returns for FY 2020-21: MCA Imposes Penalty on Private Limited Company & Directors

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty on a private limited company and its directors for failing to file annual returns for the financial year 2020-21, violating Section 92 of the Companies Act, 2013. During an inquiry under Section 206(4), it was found that the company did not submit its annual returns within 60 days of the AGM as required.

A Show Cause Notice was issued on August 19, 2024, under Section 454, but no response was received. The notices were returned with the remark “Party left address,” confirming non-compliance. The adjudicating officer imposed penalties under Section 92(5) on both the company and its directors.

MCA Initiates Penal Action on Company & Directors Due to Non-Filing of e-Form MGT-14

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty of Rs. 3.5 lakhs on a private limited company and its three directors for failing to file e-Form MGT-14 for the years 2017 to 2020. The company, registered under the Companies Act, 2013, with an authorized capital of Rs. 10 lakhs, violated Section 117(1) read with Section 179(3)(g) of the Act by not filing the required form for account approval.

Despite a Show Cause Notice issued on June 11, 2024, no response was received within the prescribed 15-day period. The adjudicating officer determined non-compliance, also noting that the company was not maintaining its registered office. Consequently, penalties were imposed on both the company and its directors.

Non-Filing of Annual Returns Since Incorporation: MCA Imposes Penalty on Private Limited Company & Directors

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a penalty on a private limited company and its directors for failing to file annual returns since incorporation. The company, registered under the Companies Act, 2013, with an authorized capital of Rs. 10 lakhs, was found non-compliant following complaints from the Reserve Bank of India (RBI). The adjudicating officer determined violations under Section 92(5) of the Act.

Despite a show cause notice and an opportunity for an e-hearing on December 17, 2024, no response was received. Consequently, penalties were imposed on both the company and its directors, as specified in the adjudication order.

Non-Maintenance of Registered Office: MCA Imposes Rs. 4 Lakh Penalty, Directors to Pay from Personal Income

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC) Punjab and Chandigarh, imposed a penalty of Rs. 4 lakhs on EURO COTSPIN LIMITED and its directors for failing to maintain a registered office, violating Sections 12(1) and 12(4) of the Companies Act, 2013. The issue came to light when letters sent by the RoC to the company’s registered office regarding complaints from depositors were returned undelivered with remarks stating “No such office” or “No such person.”

Despite a Show Cause Notice issued on February 7, 2024, no response was received from the company or its directors. Consequently, the RoC imposed penalties under Section 12(8), directing that the amount be paid via the MCA portal. The adjudicating authority further ruled that the directors must pay the penalties from their personal income, warning of potential fines or imprisonment under Sections 454(8)(i) and 454(8)(ii) for non-payment.

Non-Utilization of CSR Funds: MCA Imposes Rs. 61.31 Lakh Penalty on Pvt Ltd Company & Directors

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC) Telangana, imposed a Rs. 61.31 lakh penalty on a private limited company and its directors for failing to transfer unspent CSR funds as required under Section 135(5) of the Companies Act, 2013. The company missed the deadline to transfer Rs. 26.65 lakhs to a Schedule VII fund for FY 2020-21, making it liable under Section 135(7).

Although the company later deposited the amount into the PM CARES Fund on November 10, 2022, the RoC upheld penalties. The company was fined Rs. 53.31 lakhs, and Rs. 2 lakhs each was imposed on its four directors. The appellants were directed to comply with the order under Section 454(8) of the Companies Act.

Non-Appointment of Company Secretary: MCA RoC Slaps Rs. 17.12 Lakh Penalty on Company & Directors

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC), imposed a Rs. 17.12 lakh penalty on Solis Pharmachem Private Limited and its directors for failing to appoint a Whole-Time Company Secretary as required under Section 203 of the Companies Act, 2013. Following an increase in paid-up share capital beyond Rs. 10 crores in December 2021, the company was obligated to make the appointment but remained non-compliant during FY 2022-23 and 2023-24.

As the company does not qualify as a "small company," it is ineligible for a reduced penalty under Section 446B. The adjudicating officer considered the financials, nature of default, and investor impact before imposing penalties. The company and its officers must pay the penalty from personal income within 60 days to avoid further action under Section 454A of the Companies Act, 2013.

MCA Imposes Penalty on Vinjoh Healthcare Private Limited & Directors for Non-Maintenance of Registered Office

The Ministry of Corporate Affairs (MCA), through the Registrar of Companies (RoC) Gujarat, imposed a Rs. 3 lakh penalty on Vinjoh Healthcare Private Limited and its directors for failing to maintain a registered office, violating Section 12(1) of the Companies Act, 2013. A show cause notice was issued on May 31, 2023, but official communications sent to the company’s registered office were returned, prompting further investigation.

As the company qualifies as a "small company," reduced penalties under Section 446B were applied. The adjudicating officer directed the company and its officers to pay the penalty within 60 days via e-payment on the MCA portal. Failure to comply may result in further proceedings under Section 454A of the Companies Act, 2013.

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