ROC Cuttack Order on CSR-2 Non-Compliance: Detailed Analysis of Penalty under Section 450
The Registrar of Companies, Cuttack, has passed an adjudication order dated 13.07.2026 imposing monetary penalties on KASHVI POWER & STEEL PRIVATE LIMITED and its officers for failure to file Form CSR-2 within the prescribed timeline for the financial year 2020-21. The order, issued under Section 454 of the Companies Act, 2013, revolves around non-compliance with Rule 12(1B) of the Companies (Accounts) Rules, 2014, attracting penal consequences under Section 450.
This write-up distils the essence of the adjudication order, explains the legal framework applied, and highlights practical compliance lessons for companies falling under Section 135 of the Companies Act, 2013.
Legal Framework Applied in the Order
Appointment of Adjudicating Officer
The Ministry of Corporate Affairs, through Gazette Notification No. S.O. 698(E) dated 10/02/2026, appointed the Registrar of Companies, Cuttack, as Adjudicating Officer under Section 454 of the Companies Act, 2013. This appointment authorises the officer to adjudicate penalties prescribed under the Act, read with the Companies (Adjudication of Penalties) Rules, 2014.
Note:
Section 454empowers the Central Government to appoint adjudicating officers to determine and levy penalties for contraventions under the Companies Act where such power is specifically conferred.
Relevant Statutory Provisions
Rule 12(1B) of the Companies (Accounts) Rules, 2014
This rule requires every company covered under
Section 135(1)(CSR provisions) to file a specific report on Corporate Social Responsibility in Form CSR-2.The report is to be submitted to the Registrar for the preceding financial year as an addendum to:
- Form AOC-4, or
- Form AOC-4 XBRL, or
- Form AOC-4 NBFC (Ind AS), as applicable.
A special proviso was inserted for the first year of implementation:
For the financial year 2020-21, Form CSR-2 had to be filed separately on or before 30.06.2022, after filing the applicable AOC-4 form.
Section 450 of the Companies Act, 2013
- This is a residuary penalty provision.
- Where no specific penalty or punishment is provided elsewhere in the Act for a contravention of any provision of the Act or the rules made thereunder,
Section 450applies. - Under this section:
- The company and every officer in default are liable to a penalty of ₹10,000.
- In case of continuing default, an additional penalty of ₹1,000 per day is leviable after the first day of contravention.
- There is a cap on the total penalty:
- Maximum ₹2,00,000 for the company; and
- Maximum ₹50,000 for each officer in default or other person.
Background of the Company and Parties Involved
Company Details
- Name: KASHVI POWER & STEEL PRIVATE LIMITED
- CIN: U40100OR2009PTC011341
- Registered Office:
PLOT NO. 1234-P, GOBINDPRASAD BOMIKHAL NA,
BHUBANESWAR, ORISSA, INDIA, 751010
Individuals Named in the Proceedings
The adjudication proceedings covered the following persons:
- Company: KASHVI POWER & STEEL PRIVATE LIMITED
- Managing Director: Shri Debabrata Behera
- Present Company Secretary: Ms. Madhusmita Sahu
- Former Company Secretary: Ms. Madhuchhanda Pradhan
These individuals were examined to determine who qualifies as "officer in default" for the purposes of Section 450.
Nature of Non-Compliance: Delay in Filing Form CSR-2
Statutory Due Date vs Actual Filing
- Financial Year Concerned: 2020-21
- **Statutory Due Date for CSR-2 (as per Rule 12(1B) proviso)😗* 30.06.2022
- Actual Date of Filing Form CSR-2: 01.06.2026
Thus, there was a delay of nearly four years from the prescribed due date for filing Form CSR-2 for FY 2020-21.
The ROC observed that this delay amounted to a direct breach of Rule 12(1B) of the Companies (Accounts) Rules, 2014, leading to application of Section 450.