MCA Imposes ₹4 Lakh Penalty on Company for not Maintaining Registered Office u/s 12 of Companies Act
Under Section 12(8) of the Companies Act, the maximum penalty that can be imposed on the company and each director for contravening the provisions of Section 12(1) is Rs. 1 lakh
In a recent adjudication order issued by the Ministry of Corporate Affairs ( MCA ), the Registrar of Companies ( ROC ), Uttar Pradesh, penalized Ummid Mutual Benefit Nidhi Limited and its directors with Rs. 4 lakh for failing to maintain a registered office, violating Section 12 of the Companies Act, 2013. The company was incorporated on March 15, 2017, with an authorized capital of Rs....
In a recent adjudication order issued by the Ministry of Corporate Affairs ( MCA ), the Registrar of Companies ( ROC ), Uttar Pradesh, penalized Ummid Mutual Benefit Nidhi Limited and its directors with Rs. 4 lakh for failing to maintain a registered office, violating Section 12 of the Companies Act, 2013.
The company was incorporated on March 15, 2017, with an authorized capital of Rs. 20 lakh. However, during an inquiry, a letter was sent to its registered office which was returned undelivered, with the postal remark stating that no such company existed at the given address. This led to a violation of Section 12(1) of the Companies Act, which mandates that a company must have a registered office at all times to receive communications.
Despite a show cause notice issued on March 4, 2024, neither the company nor its directors responded, reinforcing the suspicion that they failed to maintain the registered office. Consequently, the ROC imposed penalties as per Section 12(8) of the Companies Act, which prescribes a penalty of Rs. 1,000 per day of default, capped at Rs. 1 lakh per person.
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The penalty imposed under Section 12(8) of the Companies Act, 2013 amounts to Rs. 1,00,000 each for Ummid Mutual Benefit Nidhi Limited and its three directors. The company is penalized Rs. 1,00,000 for failing to maintain a registered office as required by law. All company directors, have each been fined Rs. 1,00,000 for their roles in the non-compliance.
The total penalty imposed amounts to Rs. 4,00,000. This penalty must be paid through the MCA21 portal within 90 days of receiving the adjudication order. The company is also required to file Form INC-28, attaching the adjudication order and proof of payment. Failure to comply with this order may lead to further legal consequences under Section 454(8) of the Companies Act, 2013.
To Read the full text of the Order CLICK HERE
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