The Ministry of Corporate Affairs ( MCA ), through the Office of the Registrar of Companies ( ROC ), Uttar Pradesh, has penalized Shubhmangal India Nidhi Limited and its directors with Rs. 11,11,000 for failing to file Form MGT-14 for multiple financial years, in violation of Section 117(1) read with Section 179(3)(g) of the Companies Act, 2013.
Shubhmangal India Nidhi Limited, incorporated on May 1, 2016, with an authorized capital of Rs. 15 lakh, failed to file Form MGT-14 for the approval of accounts for the financial years 2017-18 to 2020-21. Section 117(1) mandates companies to file a copy of board resolutions regarding specific matters, including approval of financial statements, within 30 days of passing.
Upon inquiry, it was found that the company had not complied with this requirement. Consequently, the ROC, Kanpur, issued a Show Cause Notice on April 25, 2024, to the company and its directors. However, neither the company nor its representatives responded to the notice or appeared for a hearing.
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The MCA imposed a penalty of Rs. 2,00,000 on the company and Rs. 50,000 each on its directors for failing to file Form MGT-14 for 2017-18, violating Section 117(1) of the Companies Act, 2013. Similar penalties were imposed for 2018-19, 2019-20, and 2020-21, totaling Rs. 11,11,000. The penalties were capped as per Section 117(2) of the Act despite the prolonged default.
The total penalty of Rs. 11,11,000 must be paid via Demand Draft in favor of “Pay & Accounts Officer, Ministry of Corporate Affairs, New Delhi” within 90 days from the date of this order. Failure to comply may lead to further legal action under Section 454(8) of the Companies Act, 2013.
If aggrieved, the company and its directors can appeal within 60 days before the Regional Director (Northern Region), MCA, New Delhi, by filing Form ADJ along with a certified copy of the adjudication order.
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