Company and Directors Penalised Over Annual Return Filing Default

The Registrar of Companies (ROC), Uttar Pradesh, has imposed a penalty on Lokvikas Benefit Nidhi Limited and its officers for failing to file the company’s annual return for the financial year ending March 31, 2020.

The action was taken after the SCA MCA’s order for an inquiry under section 206 (4) of the Companies Act 2013. During the course of the inquiry, the investigating officer found that the company had not filed its Annual Return in Form MGT-7 for FY 2019-20. The same was held to be a violation of Section 92(4) of the Companies Act, which requires companies to file annual returns within the prescribed time.

The inquiry officer submitted the report recommending penal action against the company and its officers in default under Section 92(5) of the Act. Later, the Directorate General of Corporate Affairs (DGCoA) and the Regional Director (Northern Region) directed the ROC office to take necessary action for the non-compliance.

ROC noted that the company had filed annual returns for all other financial years except the year ending March 31, 2020. The matter was also considered in light of the Company Fresh Start Scheme (CFSS).

Show-cause notices were issued to the company and its officers for the default. Hearings were set for May 21, 2026, and May 13, 2026. But the company or its officers failed to respond to the notices or to file the pending annual return.

As a result, the ROC imposed Rs 1,76200 on the company and Rs 50,000 each on officers in default under Section 92(5) of the Companies Act, 2013, for failure to file the annual return for FY 2019-20.