ROC Imposes Penalty of 3.86 Lakhs for Holding Duplicate DIN [Read Order]

The Companies Act, 2013, restricts an individual from obtaining more than one Director Identification Number (DIN). A person can only have one DIN. But what if someone tries to obtain more than one? The same issue occurred with a director, Mr Vamsi Anirudh Krishna Dhaduvai, who had already been allotted a DIN 13.06.2007. He was serving as director in two private companies, i.e., M/S Sneha Cold Storage Private Limited and M/S. Foster Cold Storage Private Limited.

Later, the director was alloted with a second DIN in an approval letter dated 23.08.2022, which was a violation of Section 155 of the Companies Act, 2013, which says that, “No individual, who has already been allotted a Director Identification Number under section 154, shall apply for, obtain or possess another Director Identification Number.”

However, after the DIN realised that he had violated the Companies Act, he filed for surrender of the second DIN via Form DIR-5 on 25.06.2024. As per Section 159 of the Companies Act, if someone has applied for or obtained more than one DIN, such directors will be liable to pay a penalty which may extend to Rs 50,000, and where the default is continuing, the further penalty may extend to Rs 500 per day after the first day during which the default continues.

The director in this case violated Section 155 of the Act from 23.08.2022 to 25.06.2024 (672 days). Therefore, the Registrar of Companies is imposing a penalty as follows:

The director is required to pay Rs 3,86,000 within 90 days from his own funds through the MCA website. Additionally, he is required to file Form INC-28, attaching a copy of the orders and payment challans. The director is also allowed to file an appeal with the Regional Director within 60 days.