ROC Levies penalty of Rs. 2.75 Lakhs for Non-Filing of INC 20A [Read Order]

The Ministry of Corporate Affairs in the matter of M/s. Baglamukhi Kisan Producer Company Limited imposed penalty of Rs. 2.75 lakh for Non-filling of INC 20A.

Relevant Text of the Order:

The Company viz. The company M/s. Baglamukhi Kisan Producer Company Limited with this office and incorporated on 23.10.2020 and as per information available on MCA data base, the company has not filed its e-form INC-20A for commencement of business within 180 days from the date of incorporation and the 180 days has been expired on 22.07.2021. Thus it is apparent that company has violated the provisions of Section 10A (1)(a) of the Companies Act, 2013. Therefore, it seems that the company has violated of Section 10A(1)(a) of Act which attracted penal provisions of Section 10A(2) of the Companies Act, 2013.

Subsequently, this office had issued show cause notice U/s. 10A of the Companies Act, 2013 to the company and its officers in default vide No. ROC-G/Adj.Pen./u/s. 10A/Baglamukhi Kisan/2173 to 2178 dated 10.10.2023 to the company and officers in default.

In response of this office notice dated 10.10.2023, e-mail dated 27.10.2023 received from CS Palash Jain and had stated that due to some technical issue, the paid-up capital of the company was wrongly showing on the MCA portal and after regular follow-up with CRC the same did not corrected. Due to that reason, the company has not filed INC-20A for commencement of business within 180 days from the date of incorporation and the time period has expired also the company has not commenced any business.

As per information available on MCA 21 portal, it has been found that the company has not filed its INC-20A till date.

As per [Rule 3(3), companies (Adjudication of Penalties) Rules, 2014 and the date of hearing was fixed on 19.12.2023 at 11.00 A.M. in the office of Registrar of Companies, Madhya Pradesh, Sanjay Complex, A-Block, 3rd Floor, Jayendraganj, Gwalior.

On the date of hearing i.e. 19.12.2023, no person or representative of the company has attended the hearing.

Order:

Having considered the facts and circumstances of the case and after taking into account the factors above and letter dated 10.10.2023 and 08.12.2023 issued by ROC, Gwalior, it is concluded that the company and its officers in default are liable for penalty as prescribed under Section 10A(2) of the Act for default is made in complying with the requirements of Section 10(A) of the Act of the company viz. Baglamukhi Kisan Producer Company Limited 878 (22.07.2021 commencement date of default to 19.12.2023 (date of hearing).

The opinion that penalty is commensurate with the aforesaid failure committed by the notice and penalty so imposed upon the officers- in-default shall be paid from their personal sources/income. It is further directed that penalty of Rs. 2.75 lakh imposed shall be paid through the Ministry of Corporate Affairs portal only as mentioned under Rule 3(14) of Company (Adjudication of Penalties) (Amendment) Rules, 2019 under intimation to this office.

The penalty amount shall be remitted by the company through MCA21 portal within 60 days from the date of order. The company needs to file INC-28 as per the provisions of the act, attaching the copy of adjudication order along with payment challans.

Any person aggrieved by the order of adjudicating authority under Section (3) of Section 454 may prefer an appeal to the Regional Director having jurisdiction in the matter.

Every appeal under sub-section (5) of Section 454 shall be filed within 60 days from the date on which the copy or order made by the adjudicating authority is received by the aggrieved person and shall be in such form, manner and be accompanied by such fee as may be prescribed.

As per Section 454(8) (i) where a company fails to comply with the order made under sub-section (3) or sub-section (7) as the case may be within 90 days from the date of receipt of the copy of the order, the company shall be punishable with fine which shall not be less than twenty-five thousand, but which may extend to five lakh rupees.

Where an officer of a company or any other person who is in default fails to comply with the order made under sub-section (3) or sub-section (7) as the case may be within a period of 90 days from the date of receipt of the order, such officer shall be punishable with imprisonment which may extend to six months or with the fine which shall not be less than twenty five thousands rupees but which may extend to one lakh or with both.

This order is without prejudice to the rights available to this office to initiate separate actions including but not limited to the penal actions for contraventions of related, incidental and/ or continuing offences/contraventions.

The adjudication notice stand disposed off with this order.

For Official Order Download the PDF Given Below: