MCA Confirms ₹50,000 Penalty on CA for Failing to Report Auditor Resignation Under Companies Act
Regional Director upholds Rs. 50,000 penalty on CA Vijay Bora for failing to report auditor resignation as required under the Companies Act
The Regional Director (Eastern Region) of the Ministry of Corporate Affairs has upheld a Rs. 50,000 penalty against Chartered Accountant (CA) Vijay Bora for not following legal rules after resigning as an auditor. The case involved CA Vijay Bora of M/s Doogar & Associates, a Mumbai-based chartered accountancy firm. He was the auditor for Maheep Marketing Pvt Ltd, a company...
The Regional Director (Eastern Region) of the Ministry of Corporate Affairs has upheld a Rs. 50,000 penalty against Chartered Accountant (CA) Vijay Bora for not following legal rules after resigning as an auditor.
The case involved CA Vijay Bora of M/s Doogar & Associates, a Mumbai-based chartered accountancy firm. He was the auditor for Maheep Marketing Pvt Ltd, a company registered in West Bengal. As per the Companies Act, 2013, any auditor who resigns must inform the Registrar of Companies (ROC) within a specified period. This rule is mentioned in Section 140(2) of the Act.
However, according to the ROC, West Bengal, CA Vijay Bora did not file the required statement after his resignation. As a result, a notice was issued to him in January 2023, but no reply was received. Later, on July 31, 2023, the ROC passed an order and fined him Rs. 50,000 for failing to follow the rules.
CA Vijay Bora filed an appeal against the penalty on October 10, 2023, arguing that the penalty should be canceled. Multiple hearing dates were set between February 2024 and May 2025, but his representative kept requesting adjournments. The final hearing was held on May 5, 2025.
During the hearing, the auditor’s representative was unable to explain why the penalty should be cancelled or prove that the original order had any legal error. The Regional Director, Mr. Rakesh Tiwari, said that no valid reason was given to change the ROC’s decision. He confirmed the penalty and ordered that the amount must be paid from the auditor’s own pocket within 90 days.
The order also warned that if the penalty is not paid within the given time, further action would be taken under Section 454(8)(ii) of the Companies Act. This could include legal action or additional fines.
The case is now closed, and the appeal has been officially disposed of.
This case serves as a reminder to auditors and professionals to strictly follow compliance rules under the Companies Act to avoid such penalties.
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