Failure to Maintain Registered Office for Company: MCA Slaps Penalty on Company and Its Directors
The company and its directors have been directed to rectify the default by updating the registered office details on the MCA portal immediately upon receipt of the order. Further, they are required to remit the penalty amounts online within 90 days
The Ministry of Corporate Affairs ( MCA ) has imposed penalties on a private company and its directors for not maintaining a registered office as required under Section 12(1) of the Companies Act, 2013. The order, issued by the Registrar of Companies (ROC) of the National Capital Territory (NCT) of Delhi and Haryana, follows a delay of over seven years of non-compliance, during which...
The Ministry of Corporate Affairs ( MCA ) has imposed penalties on a private company and its directors for not maintaining a registered office as required under Section 12(1) of the Companies Act, 2013.
The order, issued by the Registrar of Companies (ROC) of the National Capital Territory (NCT) of Delhi and Haryana, follows a delay of over seven years of non-compliance, during which the company failed to ensure that its registered office was properly equipped to receive and accept official correspondences.
The proceedings were initiated after a direction from the Regional Director (Northern Region) dated February 19, 2021, prompted action under Section 12 read with Section 454 of the Act.
The previous notice sent under Section 206(1) to the directors and company was returned undelivered, showing that the address is non-traceable. This was considered to be a clear breach of Section 12(1) of Companies Act, which requires every company to have a running operational registered office at all times after its incorporation.
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Despite multiple notices, including show-cause notices (SCNs) sent via email and speed post, no response was received from the company or two of its directors Chandra Devi Biyala and Anil Kumar Bagri. Only one director, Jay Prakash Mukhiya, was served. The absence of any response from the company was taken as proof of continued non-compliance.
Considering that Ecospace Commodities qualifies as a “small company” under Section 2(85) of the Companies Act, 2013, the adjudicating officer reduced the applicable penalties to 50% of the maximum prescribed under Section 12(8).
Consequently, the company was penalized ₹50,000, while each of the directors Chandra Devi Biyala, Anil Kumar Bagri, and Jay Prakash Mukhiya was fined ₹50,000 each for varying periods of default. The cumulative default period extended up to 2,704 days in some instances.
The company and its directors have been directed to rectify the default by updating the registered office details on the MCA portal immediately upon receipt of the order. Further, they are required to remit the penalty amounts online within 90 days.
If they fail to comply with this order, it may lead to further enforcement actions under Section 454(8) of the Act. The adjudication order also mentions that an appeal, if any, may be filed with the Regional Director (Northern Region) within 60 days from the date of receipt.
To Read the full text of the Order CLICK HERE
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