MCA imposes Rs. 3 lakh Penalty on Private Limited Company & Directors for failure to maintain registered office

In the recent order of adjudication passed under Section 454 by the Ministry of Corporate Affairs ( MCA ) Registrar of Companies, a penalty of Rs. 3 lakhs was imposed on a private limited company and its directors for non-maintenance of registered office.

This company was incorporated in the year 2007 and has been registered under the provisions of the Companies Act, 2013.

Become PF & ESIC Pro: Basic to Advance Course - Enroll Today

During the physical inquiry conducted by the officials, it was revealed that the company failed to maintain its registered office at the stated address, violating Section 12 of the Companies Act, 2013. A Show Cause Notice was issued on 09.08.2024 to the company and its officers, but it was returned undelivered with remarks indicating they were no longer at the address. No response has been received from the company or its directors.

Section 12(1) of the Act provides 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.

(ii) Section 12(4) QI the Act reads as under:-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.

(iii) 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. “

Become PF & ESIC Pro: Basic to Advance Course - Enroll Today

 Due to the above reasons, the adjudicating authority imposed a penalty of Rs. 3 lakhs on both the company and its directors under Section 12(8) of the Companies Act. According to Section 454 and relevant rules, the adjudicating officer may impose a penalty in their absence after recording the reasons.

The penalty imposed has been clearly given in the order in the table.

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

To Read the full text of the Order CLICK HERE

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates