MCA IMPOSES PENALTY OF Rs.13 LAKH FOR NON-SUBMISSION OF BALANCE SHEET

1. Appointment of Jury:

 Pursuant to section 454 of the Companies Act, 2013 and the Companies (Imposition of Fines) Rules, 2014, the Ministry of Corporate Affairs has appointed a jury to determine the penalties under this Act.

1.  Nature Gold Nidhi Limited: 

The company was registered under the Companies Act, 2013 on 04.02.2015 and is situated in Uttar Pradesh. The share capital of the company is Rs. 10,00,000/-

1.  Violation of the Private Companies Act:

 The investigation revealed that the company did not conduct its business in accordance with the provisions of the Limited Liability Companies Act, 2013. Despite letters and challenges, neither the company nor its managers responded or appeared before the authorities. This breach resulted in a breach of Section 137 of the Companies Act 2013.

1.  Show cause notice: 

The company and its employees have been notified in terms of section 137(3) of the Limited Liability Companies Act 2013. From the Commercial Register- office The company did not respond to the notice.

1.  No Hearing or Response:

 The company and its directors failed to respond to the show cause notice and due to their non-appearance, no hearing was scheduled.

1.  The default date was set at October 30, 2019, which means continued neglect as required by law.

1.  Penalties imposed: 

In the circumstances, Rs. 10,00,000 was imposed on the company and each of the three directors was fined Rs. 1,00,000/- each under Section 137(3) of the Companies Act, 2013. Accordingly, the penalty was Rs. 13 thousand

1. Calculation of Penalties: 

The article describes the calculation of penalties of Rs. 20,21,000/-

1.  Date of payment:

 The fines were directed to be paid within 90 days of receipt of the order through the Office of Claims and Accounts, Ministry of Corporate Affairs, New Delhi.

1. Appeal Process:

 The article informs readers of the right to file an appeal with the Regional Director within sixty days of receiving the order pursuant to § 454(5) and § 454(6) of the Act.

1.  Consequences of non-compliance:

 Attention is drawn to Section 454(8) of the Companies Act, 2013 which provides that non-compliance may result in the Registrar of Companies U.P. getting information about the appeal, penalties and payments made.