Late Filing of e-Form MR-2 Costs Company and Directors Rs 64,000 Penalty

The Registrar of Companies (ROC) Haryana under the Ministry of Corporate Affairs (MCA) has imposed a penalty of Rs 64,000 on the company, Munjal Showa Limited and three of its directors for violating Section 450 of the Companies Act 2013. The penalty has been confirmed through an order no. PO/ADJ/05-2026/HR/02250, dated May 21, 2026. 

On May 29, 2024, the disputed company had appointed a Managing Director, under the second provision of Section 196(3)(a) read with Schedule V of the Companies Act, 2013. If the appointment of a Managing Director does not fully satisfy the conditions prescribed in said schedule, i.e., Schedule V, the company is mandated to seek approval from the Central Government by filing e-form MR-2.

According to Rule 7(3) of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the companies are required to fill this form within 90 days from the date of appointment. However, in the present, the form was filled out on September 03, 2024, which was 6 days late from the prescribed time limit. The company and its directors admitted that the delay was not intentional.

Because of this non-compliance, the company and its directors become liable to penal action under Section 450 of the Companies Act, 2013. Consequently, a penalty of Rs 16,000 is imposed on Munjal Showa Limited and Rs 48,000 on its three directors named Pankaj Gupta, Neha Bansal and Yogesh Chander (Rs 16,000 on each).

The company and its officials have been directed to pay the imposed penalty amount and rectify the default within 90 days of receiving the order.

Refer to the official order for complete information.