Failure to file Annual Returns for the FY 2020-21: MCA imposes Penalty of Rs. 5.6 Lakhs on Company and Directors [Read Order]

In the adjudication passed by the Ministry of Corporate Affairs (MCA) Registrar of Companies under Section 454 of the Companies Act, 2013, a penalty was imposed on the company and its 3 directors for the non-filing of financial statements for the financial years (FY) 2016-17 to FY 2021 under Section 137 of the Companies Act, 2013.

The private company Truthigh Fintech Private  Limited was registered under the Companies Act, 2013, on 17-9-2019.

Coming to the facts of the present case, an inquiry under Section 206(4) of the Companies Act, 2013, was conducted regarding the irregular functioning of the company. During the inquiry, it was found that the company violated Section 137 of the Act. It is to be noted that, as per Section 137, the company was required to file its financial statements within 30 days of the AGM held under Section 96 of the Companies Act. However, the company failed to file the financial statements for FY 2020–2021.

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Section 137(1) of the Companies Act, 2013, states that: "A copy of the financial statements, including consolidated financial statements, if any, along with all the documents which are required to be or attached to such financial statements under this Act, duly adopted at the annual general meeting of the company, shall be filed with the Registrar within thirty days of the date of the annual general meeting in such manner, with such fees or additional fees as may be prescribed."

Although a show cause notice (SCN) was issued to the company and its officers on 19-8-2024, no reply was furnished, and as the company and its officers neglected to respond to the SCN, by virtue of Section 454 of the Companies Act, 2013, the adjudicating officer passed an order imposing a total penalty of Rs. 4.56 lakhs.

Thus, by reaching the conclusion that the company violated the provisions of Section 137 of the Companies Act, from 31-12-2-2-1 to 19-8-2024,  the adjudicating authority imposed a penalty on both the company and its 7 directors, which comes to a total of Rs. 4,56,200.

The penalty imposed was clearly given in the table of the order.

This order was issued by B. Mishra, Registrar of Companies & Adjudicating Officer, Maharashtra, Mumbai.

To Read the full text of the Notice CLICK HERE

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