ROC Kanpur Adjudication Order: Penalty for Violation of Section 92 of Companies Act, 2013
The Registrar of Companies (ROC), Kanpur, acting as the Adjudicating Officer, has passed a significant order penalizing Pranam India Nidhi Limited and its directors. The adjudication was carried out under the authority of Section 454 of the Companies Act, 2013, addressing the company's failure to adhere to statutory reporting requirements prescribed under Section 92(4) read with Section 92(5) of the Act.
Legal Provisions and Adjudication Authority
The Ministry of Corporate Affairs (MCA), through a Gazette notification, has empowered the ROC to adjudicate penalties for non-compliance. The specific violation in this matter pertains to Section 92(4) of the Companies Act, 2013.
According to this section, every company is mandated to file its Annual Return (Form MGT-7) within a specified timeline after the Annual General Meeting. Section 92(5) outlines the penal consequences for non-compliance:
- Base Penalty: A fixed penalty of ₹10,000 upon default.
- Continuing Default: An additional penalty of ₹100 for every day the failure continues.
- Maximum Cap: The total penalty is capped at ₹2,00,000 for the company and ₹50,000 for each officer in default.