ROC Imposes Penalty of Rs. 3.45 lakh on Company and Its Officials Over Failure to Appoint Woman Director

ROC Ahmedabad under the Ministry of Corporate Affairs (MCA), Government of India, has issued an Adjudication Order dated December 15, 2025, against a company named German Green Steel and Power Limited, having CIN U27100GJ2008PLC054437 and its officials, imposing a penalty under Section 454 of the Companies Act, 2013, for violation of Section 172 of the Companies Act, 2013.

The case is related to Inamulhaq Shamsulhaq Iraki, having DIN 00292588, and Abdulhaq Shamsulhaq Iraki, having DIN 02188266. Both of these individuals are connected to the aforesaid company.

The company and its officers had admitted the non-compliance done by them and furnished a joint application (Form GNL-1) on May 31, 2025. The company was alleged for non-appointment of a woman director as required under Section 149(1) read with Rule 3 of the Companies (Appointment and Qualification of Directors) Rules, 2014.

The company was required to make the said appointment by July 01, 2021; however, the company missed the date, and upon realising the non-compliance, it immediately appointed a woman director on January 01, 2022. An opportunity of hearing was given under Section 454(4), but no representative of the company or officers attended the e-hearing. In their written reply, the company and officers requested the authority to pass a suitable order.

In conclusion, the ROC Ahmedabad imposed a penalty amounting to Rs. 1.45 lakh on the company, German Green Steel and Power Limited, and Rs. 1 lakh on Inamulhaq Shamsulhaq Iraki and Abdulhaq Shamsulhaq Iraki each. The company has been given a time limit of 90 days from receiving the order to rectify the aforementioned default and pay the imposed penalty amount.

Additionally, it instructed the company that if it is dissatisfied with the order, it has the opportunity to challenge the order before the Regional Director, RD Ahmedabad, within a period of sixty days from the date of receipt of this order.