The Indian Ministry of Corporate Affairs recently issued an order to Nature Gold Nidhi Limited through the Uttar Pradesh Registrar of Companies for violating Section 137 of the Companies Act, 2013. This article discusses the details of the case, the violations of the company and the penalties imposed.
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.
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/-
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.
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.
The company and its directors failed to respond to the show cause notice and due to their non-appearance, no hearing was scheduled.
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
The article describes the calculation of penalties of Rs. 20,21,000/-
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.
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.
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.
The Ministry of Corporate Affairs has adopted a strict position against noncompliance with the Companies Act of 2013, as proven in the case of Nature Gold Nidhi Limited. This order serves as a warning to corporations and directors to comply with regulatory requirements, and the penalties imposed highlight the repercussions of failing to do so. The article informs readers on the procedure, calculations, and their rights in the event of a disagreement with the order.