MCA notifies Electronic Mode for all Adjudication Proceedings of Penalties

The Ministry of Corporate Affairs (MCA) has made significant progress toward the complete digitization of the penalty related to adjudication processes.

The MCA has ordered that beginning September 16, all actions related to adjudication of penalties must be conducted electronically, and solely through the e-adjudication platform designed by the Central Government for this purpose.

According to company law experts, this end-to-end digitization of adjudication procedures will minimize the strain on Registrars of Companies (ROCs) and enable speedy resolution of adjudication cases.

MCA notified the Companies (Adjudication of Penalties) Amendment Rules, 2024. It announced major changes, including replacing Form No. ADJ with a newly updated version. It requires that all adjudication proceedings, including notices, filing, hearings, and penalty payments, be conducted electronically through the Central Government’s e-adjudication platform. The change is part of the Companies (Adjudication of Penalties) Amendment Rules, 2024, which take effect on September 16, 2024.

The main change introduced by this amendment is the addition of a new rule, 3A, after the existing Rule 3.

After rule 3, the following rule shall be inserted, namely:-

“3A. Adjudication Platform – (1) On the commencement of the Companies (Adjudication of Penalties) Amendment Rules, 2024, all proceedings (including issue of notices, filing replies or documents, pieces of evidence, holding of hearing, attendance of witnesses, passing of orders and payment of penalty) of adjudicating officer and Regional Director under these rules shall take place in electronic mode only through the e-adjudication platform developed by the Central Government for this purpose.

(2) In case the e-mail address of any person to whom a notice or summons is required to be issued under these rules is not available, the adjudicating officer shall send the notice by post at the last intimated address or address available in the records and the officer shall preserve a copy of such notice in the electronic record in the e-adjudication platform referred to in sub-rule (1):

Provided that in case no address of the person concerned is available, the notice shall be placed on the e-adjudication platform.”

This above-mentioned amendment also replaced the Form. ADJ.

For Official Notification Download PDF Given Below: