ROC Delhi Imposes Maximum Penalty for Failure to File DIR-12 on Cessation of Additional Director — Section 172 of Companies Act, 2013
Background and Overview
The Registrar of Companies, Delhi has passed an adjudication order penalising Absolute Projects (India) Limited along with its officers in default for a prolonged statutory non-compliance involving the failure to report the cessation of an Additional Director. The violation pertains to Section 161(1) of the Companies Act, 2013, and penalty has been levied under Section 172 of the same Act. The default period stretched across an extraordinary 7,805 days, ultimately resulting in the maximum permissible penalty being imposed on all concerned parties.
Company and Individual Details
| Particulars | Details |
|---|---|
| Company Name | Absolute Projects (India) Limited |
| CIN | U74999DL1995PLC065160 |
| Registered Office | 4222/1 Laxmi Kunj, 1st Floor, Ansari Road, D. Ganj, New Delhi – 110002 |
| Order ID | PO/ADJ/05-2026/DC/02102 |
| Order Date | 07/05/2026 |
Officers involved in the adjudication proceedings:
- Ranjeet Singh Ola (DIN: 00190018)
- Sunita Ola (DIN: 00190165)
- Dharamvir Parmar (DIN: 01222100)
Appointment of Adjudicating Officer
The Ministry of Corporate Affairs, through Gazette Notification No. S.O. 831(E) dated 24/03/2015, designated the Registrar of Companies as Adjudicating Officer under Section 454 of the Companies Act, 2013, read with the Companies (Adjudication of Penalties) Rules, 2014, for the purpose of adjudging penalties under the Act.
Applicable Legal Framework
Section 161(1) — Appointment of Additional Director
Under Section 161(1) of the Companies Act, 2013, the Board of Directors may appoint an Additional Director, who shall hold office only until the conclusion of the next Annual General Meeting (AGM) or the last date by which such AGM ought to have been held, whichever falls earlier. It is mandatory that such an Additional Director be regularised through shareholder approval at the ensuing AGM. Failure to do so results in automatic vacation of office by operation of law.
Section 172 — Penalty for Default in Compliance
Section 172 of the Companies Act, 2013 provides the penalty framework for defaults under the relevant chapter where no specific penalty has been prescribed. The provision reads as under:
"If a company is in default in complying with any of the provisions of this Chapter and for which no specific penalty or punishment is provided therein, the company and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees, and in case of continuing failure, with a further penalty of five hundred rupees for each day during which such failure continues, subject to a maximum of three lakh rupees in case of a company and one lakh rupees in case of an officer who is in default."