In the recent order of adjudication passed by the Ministry of Corporate Affairs ( MCA ) Registrar of Companies, a penalty of Rs. 8 lakhs was imposed on the private limited company for not declaring a significant beneficial owner under the Companies Act, 2013.
The inquiry report under Section 208 of the Companies Act, 2013, was submitted on 28.06.2022. The company, primarily owned by Mr. Zeng Shanghai (99.99%), had not filed e-form BEN-2 as required under Section 90 of the Act. Despite a notice issued on 15.02.2024, there was no response from the company.
To address this non-compliance, a Show Cause Notice ( SCN ) was sent on 26.04.2024, with a hearing scheduled for 10.05.2024. However, neither the company nor its representatives responded or appeared. Given these repeated lapses, it is clear that the company should have issued BEN-4 to identify its Significant Beneficial Owner and obtained the necessary declaration in compliance with the law.
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The order also contained that the notice must pay the penalty individually via e-payment on the MCA website under “Pay Miscellaneous Fees” within 90 days, and an appeal can be filed with the Regional Director (Northern Region), Ministry of Corporate Affairs, within 60 days using Form ADJ, along with a certified copy of this order.
In this order, Rs. 5 lakhs was the penalty imposed on the company, and Rs. 1 lakh each was charged to the 3 directors.
It was also stated that non-compliance may attract further action under Section 454(8) of the Companies Act, 2013.
This order was issued by Seema Rath, Registrar of Companies and Adjudicating Officer, Uttar Pradesh, Kanpur.
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