ROC Slaps penalty for Non-Maintenance of Register of Charges

The Registrar of Companies (ROC), in the matter of M/s. HOLITECH INDIA PRIVATE LIMITED slapped penalty for Non-Maintenance of Register of Charges.

The Ministry of Corporate Affairs vide its gazette notification no A-42011/112/2014-AD II dated 24.03.2015, has appointed the undersigned as Adjudicating Officer in exercise of the powers conferred by section 454 of Companies Act, 2013 (hereinafter known as Act) read with Companies (Adjudication of Penalties) Rules,2014 under the provisions of this Act.

Whereas the Company M/S HOLITECH INDIA PRIVATE LIMITED has been registered under the provisions of Companies Act on 11.04.2018, and is having its registered office situated at Plot No. 67, Ecotech-1 Extension- 1, Greater Noida, Gautam buddha Nagar, Greater Noida, Uttar Pradesh, 201310. The authorized capital of the company is Rs. 1,00,00,00,000.

The Directorate vide its letter no. Inq./Guard/2021/10971 dated 17.12.2021 and Ministry’s letter no. F.No. CL-II-08/131/2021-DGCOA-MCA dated 13.12.2021 directed to conduct the inquiry u/s. 206(4) of the Companies Act, 2013. The Inquiry Officer (IO) sought information and documents (Certified copies of all statutory Registers required to be maintained under Companies Act, 2013 since incorporation) from the Company under Section 206(1) of the Companies Act, 2013 vide letter no. 01/39/Inquiry/Holitech/2021/2380 dated 24.12. 2021.. The Company had furnished partial reply vide letter dated 04.01.2022 in which the register of charge as provided by the Company with its reply was not maintained properly as details pertaining to creation of charge of Rs.1,00,000,000/- on 08.11.2020 was not recorded in the register. Further, satisfaction of three charges on 14.12.2020 which were created on 01.07.2019 also not recorded in the register. The Regional Director vide its letter dated 14.07.2022 has accorded the sanction to take action on the basis of Inquiry report dated 11.07.2022 in which said non-compliance was reported. Thus, it is evident that the company and its Directors have failed to comply with the provisions of section 85(1) of the Companies Act, 2013 read with Rule 10 of Companies (Registration of Charges) Rules, 2014. And are thus liable for penal provisions.

Accordingly, a Show Cause Notice No.. 07/01/Adjudication-85(1)/ HOLITECH INDIA PRIVATE LIMITED /4779-4790 dated 10.10.2023 was issued to the company and its officers in default under section under Section 85(1) of the Companies Act, 2013 read with Rule 10 of Companies Charges) Rules, 2014, and with Companies (Adjudication of Penalties) Rules, 2014 by (Registration of Charges) Rules, 2014, and with Companies (Adjudication of Penalties) Rules, 2014 by this office. This office has not received the said letter undelivered also.

The company and its officers in default have failed to furnish any reply to the said Show Cause Notice, hence no hearing was fixed for this matter.

Further, neither any representative of the company nor its directors have either furnished their reply or have appeared before the undersigned which has further strengthened the apprehension that the company and its Directors have failed to comply with the provisions of 85( 1) of the Companies Act, 2013 read with Rule 10 of Companies (Registration of Charges) Rules, 2014, in maintaining details pertaining to creation of charge and satisfaction of charges in the register of charges, thereby attracting the penal provisions mentioned under Section 86(1) of the Act.

Having considered the facts and circumstances of the case and after taking into account the factors above, Hereby impose Rs. 5,00,000 (Rupees Five Lakh only) on company and penalty of Rs. 50,000 (Rupees fifty thousand only) on each Director under section 86(1) of the Companies Act, 2013 for failure to make compliance of Section 85(1) of the Companies Act, 2013 read with Rule 10 of Companies (Registration of Charges) Rules, 2014. It is of this opinion that penalty is commensurate with the aforesaid failure committed by the Notice.

The Notice shall pay the amount of penalty by way of Demand Draft in favour of “Pay and Accounts Officer, Ministry of Corporate Affairs, New Delhi, payable at Delhi, within 90 days receipt of this order. The Demand Draft shall be forwarded to this office Address.

Appeal against this order may be filed in writing with the Regional Director (Northern Region), Ministry of Corporate Affairs, CGO Complex, Lodi Road, New Delhi, within a period of sixty days from the date of receipt of this order, in Form ADJ setting forth the grounds of appeal and shall be accompanied by a certified copy of this order. [Section 454(5) and 454(6) of the Act, read with Companies (Adjudication of Penalties) Rules, 2014].

Attention is also invited to section 454(8) of the Companies Act, 2013, in the event of non-compliance of this order. In Case appeal is made O/o Registrar of Companies, UP. maybe informed along with the penalty imposed and the payments made.

For Official Order Download the PDF Given Below: