Chennai ROC Imposes Penalty on Company and Directors for Delay in Filing Beneficial Ownership Return

The Registrar of Companies (ROC), Chennai, has imposed penalties on a company and two of its directors for failing to file the required return of significant beneficial owners on time.

The company, Appian Computer Technologies India Private Limited, had received declarations of its significant beneficial owners, but it filed the required e-Form BEN-2 with a delay of 1,310 days.

As per Section 90(4) of the Companies Act, 2013, and Rule 4 of the Companies (Significant Beneficial Owners) Rules, 2018, a company is required to submit the details of Significant Beneficial Owners by filing a mandatory return within 30 days of receiving a declaration from an SBO.

The company had explained that the delay happened due to a lack of clarity on the legal requirement, including the interpretation of “majority stake” and concepts of “significant influence” under the Act.

But, since the company could not file e-Form BEN-2 within the specified time, the ROC levied a penalty of Rs 5 lakh on the company and Rs 1 lakh each on the two directors. The penalty must be paid within 90 days of receiving the order through the e-Adjudication facility available on the portal.