ROC Imposes Penalty for Duplicate DIN Allotment Due to Consultant Error

The Registrar of Companies (ROC), Mumbai-I has imposed a penalty of Rs. 48,934 on an individual director for obtaining and possessing a duplicate Director Identification Number (DIN) in violation of Section 155 of the Companies Act, 2013. Registrar of Companies Chandan Kumar passed the adjudication order under Section 454 of the Act against Mr. Ketan Chandrakant Paurana.

The proceedings arose from a suo motu adjudication application filed by the applicant on July 21, 2025, admitting that he had inadvertently obtained a second DIN due to lack of proper verification by his compliance consultant. The applicant had originally been allotted DIN 07596958 on August 23, 2016, and was subsequently allotted another DIN bearing number 09160641 on April 29, 2021.

Section 155 of the Companies Act expressly prohibits an individual from applying for, obtaining, or possessing more than one DIN. Accordingly, the ROC initiated adjudication proceedings for violation of Section 155 read with Section 159 of the Act.

A show cause notice dated May 11, 2026 was issued through the e-adjudication portal. However, no reply was submitted by the noticee. The Adjudicating Officer observed that since the application itself was filed suo motu by the applicant admitting the default, no separate hearing was required in the matter.

“The default was not intentional and not of such nature as will prejudice the interests of the members or creditors or others dealing with the Company.”

While determining the quantum of penalty, the ROC considered the mitigating circumstances, including the bona fide conduct of the applicant in voluntarily disclosing the violation. The authority noted that the violation did not result in any prejudice to stakeholders or public interest.

The Adjudicating Officer calculated the period of default from April 29, 2021, being the date of allotment of the second DIN, till May 27, 2026, the date of the order, amounting to 1855 days. Accordingly, a penalty of Rs. 10,000 was imposed for the initial default along with a continuing penalty of Rs. 21 per day for 1854 days aggregating to Rs. 38,934.

“The Applicant shall be liable to a penalty of Rs. 10,000 for first default and Rs. 21 per day for further 1854 days.”

Thus, the ROC imposed a total penalty of Rs. 48,934 under Section 159 of the Companies Act, 2013 for contravention of Section 155 relating to possession of duplicate DINs.

To Read Full Order, Download PDF Given Below.