For violating the Companies Act of 2013, N.S.J.L. NIDHI LIMITED faces a significant penalty of 64 lakhs, according to an adjudication order issued by the Office of the Registrar of Companies in Pune, Maharashtra. The company’s failure to certify the list of allottees that was attached to Form PAS-3 during the securities allotment is what constitutes the infraction. We will examine the specifics of the case, pertinent sections of the Companies Act, and the effects of this adjudication order on the business and its officers in this article.
In accordance with Section 454(1) of the Companies Act, 2013, the Ministry of Corporate Affairs designated an Adjudicating Officer to decide fines pertaining to the Act’s provisions.
Under the Companies Act of 2013, N.S.J.L. NIDHI LIMITED is a company that is registered in Pune, Maharashtra.
The case started when the Ministry of Corporate Affairs conducted an inspection and found that the corporation had not legally certified the list of allottees in Form PAS-3. Multiple non-certification cases were found on the forms that were turned in.
According to the Companies Act of 2013, a corporation must submit a Form PAS-3 return of allotment whenever it conducts a securities allocation. A certified list of the names, addresses, jobs, and the quantity of securities granted to each allottee should be included with this form.
The Adjudicating Officer determined that the corporation breached Section 39(4) of the Act by failing to certify the list of allottees on Form PAS-3. The corporation had relied exclusively on the certification of the form, failing to certify the attached list.
As a result, the Adjudicating Officer imposed sanctions on the corporation and its officers for default.
The order advised the corporation of the right to appeal the decision under section 454(5) of the Act. The appeal was to be lodged within sixty days from the date of receiving the order. Failure to pay the penalty within the stipulated period could lead to further repercussions.
According to the guidelines, a copy of the decision was issued to N.S.J.L. NIDHI LIMITED, all directors/officers in default, the Office of the Regional Director (Western Region), and the Ministry of Corporate Affairs in New Delhi.
The adjudication ruling imposing a 64-lakh penalty on N.S.J.L. NIDHI LIMITED serves as a reminder of the significance of strictly adhering to the Companies Act of 2013. The failure to certify the list of allottees as required by law resulted in significant penalties. To prevent such financial consequences, businesses must strictly follow legal regulations and obtain all necessary certifications. The article finishes by emphasising the need of firms adhering to statutory requirements in order to avoid penalties and other legal implications.