ROC Uttar Pradesh Imposes Nil Penalty on Lokvikas Benefit Nidhi Limited

The Registrar of Companies, Uttar Pradesh, dropped penalty proceedings initiated against LOKVIKAS BENEFIT NIDHI LIMITED and its directors for alleged non-filing of Form MGT-14 under Section 117(1) read with Section 179(3)(g) of the Companies Act, 2013. Registrar of Companies Sanjay Bose, acting as Adjudicating Officer under Section 454 of the Act, observed that although the alleged default was initially reported during inquiry proceedings under Section 206(4), the company had in fact already filed the requisite e-Form MGT-14 for FY 2020-21 relating to approval of accounts.

The proceedings arose after the Serious Complaint Analysis (SCA) wing of the Ministry of Corporate Affairs directed an inquiry into the affairs of the company. During the inquiry, the Inquiring Officer noted that the company had allegedly failed to file Form MGT-14 for financial years ending from 31.03.2018 to 31.03.2021 in respect of board resolutions approving financial statements, thereby attracting a violation of Section 117(1) read with Section 179(3)(g) of the Companies Act, 2013. The violation report dated 29.04.2022 recommended penal action under Section 117(2) against the company and its officers in default.

Pursuant to directions issued by the Directorate General of Corporate Affairs and the Regional Director (Northern Region), adjudication proceedings were initiated against the company and its directors, including Ambika Sharma, Dilip Sharma and Puja Sharma.

However, during adjudication, the Registrar observed that the company had already filed the requisite Form MGT-14 for FY 2020-21, though the filing was not visible at the time of issuance of the show cause notice. In view of the rectified position, the Adjudicating Officer held that no penalty was liable to be imposed under Section 117(2) of the Companies Act, 2013.

Thus, no monetary penalty was imposed either on the company or on its directors, despite the statutory penalty provision prescribing penalties for continuing default in filing resolutions and agreements with the Registrar.

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