ROC Levies Rs. 4 Lakh Penalty on Company and Directors for Address Non-Compliance in Form InC-22A

ROC (Registrar of Companies) Kanpur has released an order of adjudication imposing a penalty amounting to Rs. 1 lakh on a company named Amrul India Nidhi Limited and Rs. 3 lakh on its three directors named Shakil Ahmad, Sarvari Bano, and Riyaj Ahmad (Rs. 1 lakh on each director). The penalty has been imposed under Section 454 of the Companies Act, 2013, for violation of Section 12(8) of the Act.

In conclusion to a meeting held on April 10, 2020, the Regional Directors (RDs) were instructed to carry out an in-depth examination of the sudden increase in Nidhi Companies in Kanpur, Jaipur, and Patna and submit the report for the same. These directions have been passed by the Secretary, Ministry of Corporate Affairs (MCA).

As a result of these directions, ROC Kanpur identified the present company in question suo moto as one of the Nidhi Companies requiring examination. On examination, the Inquiry Officers (IO) noted that the company had furnished Form InC-22A, but the photographs attached to the form did not include the complete address on the name board fixed at the registered office. As per the law, the company is required to disclose its full address. Since the company failed to comply with the provision of Section 12(3)(a) of the Companies Act, 2013, it is liable for a penal action under Section 12(8) of the Act. The Inquiry Officer mentioned the non-compliance in its Inquiry Report dated June 09, 2022.

Later, the Office of the Director General of Corporate Affairs (DGCoA), through its letter dated November 10, 2023, directed that penal action be initiated for this non-compliance. The company and its directors have been given a time period of 90 days from receiving the order to correct the default and pay the imposed penalty amount.