Private Limited Company Fined 4 Lakhs by MCA for failing to maintain Registered Office

In the recent order of adjudication passed by the Ministry of Corporate Affairs ( MCA ) Registrar of Companies, a penalty of Rs. 4 lakhs was imposed on a private limited company, Dethat Trading Private Limited, and its directors for the failure to maintain a registered office by the company.

The company has been registered under the Companies Act, 2013, and the authorised capital of the company is Rs. 10 lakhs.

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An inquiry under Section 206 of the Companies Act, 2013 was ordered against the company and the inquiry officer had issued notice dated 24-11-2021 at the registered address of the Company. It was found that the letter has been received back undelivered with the postal remark " Left Address " which means that the company is not maintaining the registered office of the company hence violating provisions of Section 12 of the Companies Act, 2013.

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 of 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. “

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Although a show cause notice was issued to the company and its directors, giving them 15 days to respond. However, they failed to reply, suggesting that they are either not maintaining the company’s registered office or have not reported changes, violating Section 12(1) of the Companies Act, 2013. Their continued silence further supports this concern, making them liable for penalties under Section 12(8). The default date is considered as 24-12-2021, when the notice was issued.

This order was issued by Seema Rath, Registrar of Companies & Adjudicating Officer, Uttar Pradesh, Kanpur.

To Read the full text of the Order CLICK HERE

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