ROC Pune Imposes Penalty on Company for Failure to Disclose Certain Information in Form MGT-14

The Registrar of Companies (ROC), Pune, has slapped a penalty against a company and its director for a disclosure lapse under the Companies Act.

During the due diligence, the company, Arcatron Mobility Private Limited, realised that while issuing and allotting shares, it had failed to disclose certain required information in the supporting documents attached to e-form MGT-14 filed by the company. This disclosure was a mandatory requirement under Section 62(1)(c) of the Companies Act, 2013, read with Rule 13 of the Companies (Share Capital and Debentures) Rules, 2014.

On discovering this mistake, the company itself admitted its default by filing a suo moto application seeking the adjudication of a penalty under section 454 of the Companies Act, 2013. The company submitted that the violation was unintentional and caused by negligence.

The ROC declared the company and its directors liable for a penalty under Section 450 of the Companies Act 2013 for violating Section 62(1)(c) of the Companies Act, 2013, read with Rule 13 of the Companies (Share Capital and Debentures) Rules, 2014. Since the company qualified as a small company under the Companies Act, its penalty was reduced under Section 446B of the Act.

Accordingly, the ROC imposed a penalty of Rs 1,00,000 on Arcatron Mobility and Rs 25,000 only on its one director, who was designated as the officer in default by the board resolution of the company.

The company and the concerned director were directed to correct the default and pay the penalty within 90 days from the receipt of the order. The penalty must be paid through the MCA e-Adjudication portal, and the director must pay from personal income.