MCA Imposes ₹5 Lakh Penalty on SAEL Industries for 6-Month Delay in Appointing CFO [Read Order]

The Ministry of Corporate Affairs (MCA) recently passed an order where the Registrar of Companies (RoC) in Chandigarh put a penalty of Rs. 5.5 lakh on SAEL Industries Limited and one of its directors because they delayed 6 months in appointing a Chief Financial Officer (CFO).

SAEL Industries Limited raised its paid-up share capital to around Rs. 46.12 crore on July 4, 2022. After crossing the Rs. 10 crore limit, the law says they must appoint a CFO within six months, by January 3, 2023, under Section 203 of the Companies Act, 2013.

But the company didn't appoint a CFO on time. The delay lasted from January 4, 2023 to July 3, 2023, which is about six months. They appointed one later, but the delay caused non-compliance with the law.

The company told the RoC about this mistake themselves by filing a suo moto application on October 1, 2025, asking for adjudication of penalty. After checking, the RoC decided that the company and its director was responsible for the fault.

So, the RoC gave a penalty of Rs. 5,00,000 to SAEL Industries Limited and Rs. 50,000 to its director, Jasbir Singh, which he had to pay from his own money. No extra daily penalties were imposed because the default is already fixed.

The total penalty of Rs. 5,50,000 needs to be paid through the MCA e-adjudication portal within 90 days from receiving the order. The company and director can also appeal to the Regional Director in Noida within 60 days. If they don't pay on time, it may lead to more legal action under the Companies Act, 2013.