Nidhi Company penalised for failing to file Form MGT-14 for approval of financial statements:

Nidhi Company penalised for failing to file Form MGT-14 for approval of financial statements Shri Shanmugam-Dhanakodi Nidhi Limited, a registered Nidhi company, ran into legal trouble when the Ministry of Corporate Affairs rejected their official status update (Form NDH-4) in July 2024 because they failed to file a required document called Form MGT-14. Under the Companies Act, 2013, the company was legally obligated to file this form to record the board's approval of their financial accounts for the year ending March 2023. Although the directors argued that the company had been inactive since 2020 due to their personal health issues, they failed to show up for a scheduled electronic hearing in March 2026. Because they did not attend to defend themselves, the authorities proceeded with the case in their absence and ultimately held the company and its directors responsible for the filing violation. Issues Involved in this Case Whether the company and its officers in default are liable for penalties under Section 117(2) and Section 450 of the Companies Act, 2013, for failing to file the required board resolution (Form MGT-14) for the approval of financial statements and the board's report? Decision of the ROC Chennai The authorities confirmed that the company broke the law because they didn't file the required Form MGT-14 for their 2023 financial records. As a result, the company was fined Rs. 200,000, while the three directors – Gurunathan, Thirumaran, and Thangavel Subramaniyan Elumalai  were each ordered to pay Rs 50,000. The directors must pay these penalties using their own personal money and fix the paperwork mistake within 90 days.