RD Confirms Penalty of Rs. 6 Lakh Imposed by ROC for Non-Appointment of Company Secretary

Pinakini Industries Private Limited filed an appeal (a request to review a decision) under Section 454(5) of the Companies Act, 2013. They submitted this appeal online using a form called e-form ADJ, with reference number F26966903, on 29th September 2022. The ROC had said that the company did not follow the law in Section 203(1) and Rule 8A of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014. This law says that the company must appoint a Company Secretary if it meets certain requirements. The company failed to do this, so the ROC took action and fined them.

The Registrar of Companies (ROC) gave an order on 18th August 2022. In that order, the ROC said that Pinakini Industries Private Limited had not hired a Company Secretary after their last one left the job on 4th July 2012. The company replied to the ROC’s notice. They said that they tried to hire a new Company Secretary, but they couldn’t find anyone suitable for the job, even after trying.

On 18th August 2022, there was a meeting held about the company’s mistake. Mr. KM. Rajesh Kumar, who is allowed to speak for the company, went to the meeting and talked on behalf of the company and its directors. After listening, the Registrar of Companies (ROC) gave a penalty (fine) of Rs. 5,00,000 to the company, Pinakini Industries Private Limited, and Rs. 50,000 each to two directors, Mr. Vijaya Bhaskar Reddy Yella and Mr. Manoj Reddy Puchalapalli. Hence, the total fine is Rs. 6,00,000.

Refer to the official notification for more information.