Failure to maintain registered office: Penalty of Rs. 3 lakhs imposed by MCA on Company and Directors [Read Notification]

In the adjudication order passed by the Ministry of Corporate Affairs (MCA) Registrar of Companies under Section 454 of the Companies Act, 2013, a penalty of Rs. 3 lakhs was imposed on a company and its 2 directors for the failure to maintain a registered office by the company.

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

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In this case, an inquiry under Section 206(4) of the Companies Act, 2013, was initiated against the company. During the physical inquiry conducted at the registered office of the company ot was revealed that the company was not maintaining an office in those premises.

The adjudicating authority concluded that the private limited company failed to maintain a registered office as required and thereby violated Section 12 of the Companies Act, 2013.

Section 12(1) of the Companies Act states that “a company shall, within thirty days of its incorporation and at all times thereafter, have a registered office capable of receiving and acknowledging all communications and notices as may be addressed to it.”

Section 12(4) of the Actreads, “Notice of every change of the situation of the registered once, verified in the manner prescribed, after the date of incorporation of the company, shall be given to the Registrar within thirty days of the change, who shall record the same. “

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 Section 12(8) of the Act further provides that “(if any default is made in complying with the requirement of this section, the company and every officer who is in default shall be liable to a penalty of one thousand rupees for every day during which the default continues but does not exceed one lakh rupees.”

Although a show cause notice was issued to the company and its officers, no reply was furnished.

The adjudicating officer imposed a total penalty of Rs 3 lakhs on both the company and the directors, and the penalty imposed is accurately mentioned in the order in the table.

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

To Read the full text of the Order CLICK HERE

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