Company Fails to Maintain Register of Directors, KMP and their Shareholdings: MCA imposes Rs. 6L fine on Company and its Directors [Read Order]

The Ministry of Corporate Affairs ( MCA ) has imposed a cumulative penalty of Rs. 6 lakh on the company and its directors for failing to maintain the statutory register of Directors, Key Managerial Personnel (KMP) and their shareholdings, as mandated under Section 170 of the Companies Act, 2013.

After an investigation ordered under Section 210 against the company named Sonu Infra projects and Builders Private Limited, the Investigating Officer concluded that the company had not maintained the required register containing particulars of its directors, KMP and their respective shareholdings in the company or its holding, subsidiary, or associate companies. Based on these findings, the MCA directed the initiation of adjudication proceedings for the violation.

The ROC issued notices for e-adjudication in February and March 2025; however, neither the company nor its directors responded or appeared for the scheduled hearing. Consequently, the adjudication was proceeded ex-parte in accordance with Rule 3(8) of the Companies (Adjudication of Penalties) Rules, 2014.

Thus, based on the investigation report, the ROC held that the company had clearly failed to comply with the statutory requirement of maintaining the register prescribed under Section 170, attracting the penalty provision under Section 172 of the Companies Act, which provides for monetary penalties in cases of non-compliance where no specific punishment is prescribed.

Accordingly, the ROC levied a penalty of Rs. 3,00,000 on the company and Rs. 1,00,000 each on its directors, bringing the total penalty to Rs. 6,00,000. The company has also been directed to rectify the default by preparing and filing a copy of the statutory register, as required under Section 170 of the Companies Act

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