The adjudication order passed by the Registrar of Companies under Section 454 of the Companies Act, 2013 imposes penalties for non-compliance with Section 158, which mandates disclosure of Directors’ Identification Numbers (DINs) in financial statements. The company failed to mention DINs in its financial statements for FY 2017–18, a violation admitted during inquiry proceedings. Despite arguments seeking leniency under provisions applicable to small companies and clarifications regarding changes in directorship, the authority held the company and responsible officers liable under Section 172. Penalties were imposed on the company and certain defaulting directors, while individuals not associated during the period of default were not penalized. The order directs rectification and payment within 90 days and allows appeal within 60 days. The ruling underscores strict compliance requirements for statutory disclosures and affirms that procedural lapses attract monetary penalties even without fraudulent intent.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Uttar Pradesh I
2nd Floor, Kendriya Bhawan, GPOA Building, Fazalganj, Kanpur, Uttar Pradesh, India, 208012
Phone: 0512-2310443
E-mail: roc.kanpur@mca.gov.in
Order ID: PO/ADJ/04-2026/UP/02022 | Dated: 20/04/2026
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (THE ACT’) FOR VIOLATION OF SECTION 172 OF THE COMPANIES ACT, 2013.
A. Appointment of Adjudicating Officer:
Ministry of Corporate Affairs vide its Gazette notification number S.O. 831(E) dated 24/03/2015 appointed undersigned as Adjudicating Officer in exercise of the powers conferred by section 454 of the Companies Act, 2013[herein after known as Act] read with Companies (Adjudication of Penalties) Rules, 2014 for adjudging penalties under the provisions of this Act.
B. Company details:
In the matter relating to KANCHAL FARM LAND PRIVATE LIMITED [herein after known as Company] bearing CIN U70102UP2012PTC051969, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at 3RD FLOOR, A- BLOCK SURAJDEEP COMPLEX 1-JOPLING ROAD NA LUCKNOW UTTAR PRADESH INDIA 226001
Individual details:
In the matter relating to AMIT KANCHHAL……….
In the matter relating to SATYAJEET SINGH………..
In the matter relating to RAHUL AWASTHI………..
In the matter relating to SACHIN KANCHHAL……..
In the matter relating to MOHIT SETHI……….
In the matter relating to APARNA AGARWAL…………
C. Provisions of the Act:
If a company is in default in complying with any of the provisions of this Chapter and for which no specific penalty or punishment is provided therein, the company and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees, and in case of continuing failure, with a further penalty of five hundred rupees for each day during which such failure continues, subject to a maximum of three lakh rupees in case of a company and one lakh rupees in case of an officer who is in default.
D. Facts about the case:
1. Default committed by the officers in default/noticee – The Ministry vide its letter no. F.No. CL-II-07/477/2021-0/o DGCoA-MCA dated 13.01.2022 and the Directorate vide its letter no. RDNR/COMP/UP/KANCHAL FARM LAND/2021/2933 dated 02.02.2022 directed to conduct the Inquiry u/s 206(4) of the Companies Act 2013, against the said company and submit a report. During the Couse of Inquiry, Inquiring Officer has observed/pointed out that ?The reply of the Company is not tenable. They have admitted to their mistake of not mentioning their DI Ns under their signatures in the financial statements filed by the Company for the financial years 2017-18, 2018-19, 2019-20 and 2020-21. Hence, there is a violation of Section 158 of the Companies Act, 2013. The penal action as contemplated under Section 172 of the Companies Act, 2013 to be initiated against the Company and its officers in default for violation of Section 158 of the Companies Act, 2013 in the financial years 2017-18, 2018-19, 2019-20 and 2020-2021?. The said violation was reported by the Inquiring Officer in his report dated 29.04.2022. Accordingly, the office of DGCoA vide its File No. CL-II-04/88/2024-0/o DGCoA-MCA dated 13.12.2024 directed this office to take necessary action for non-compliance/violation of section 158 of the Companies Act, 2013 for the financial year 2017-18.
2. E hearing scheduled on 24.03.2026
E. Order:
1. It has been observed from the financial statements filed by the Company for the financial year 2017-18 that the directors signing the balance sheet have not mentioned their DIN in the financial statements, which is non-compliance of Section 158 of the Companies Act, 2013. This office issued Show Cause Notice on 25.06.2025 to the company and its officer-in-default. Mr. Indrajeet Yadav (Company Secretary in practice) appeared on behalf of the Company on 24.03.2026 through VC and requested to treat the company as Small Company and reduce the penalty as per section 446B of the companies Act 2013. Mr. Indrajeet Yadav further submitted that SATYAJEET SINGH having DIN as 02804711 has been appointed as director with effect from 31.01.2025, Shri Rahul Awasthi having DIN as 10923226 has been appointed as director with effect from 31.01.2025, Shri SACHIN KANCHHAL having DIN as 01334397 has been appointed as director on 14.08.2012 and resigned on 19.03.2015 and again appointed on 12.04.2019 and resigned on 28.06.2021 and again appointed on 20.07.2022 and APARNA AGARWAL having DIN as 06626227 has been appointed as director with effect from 28.06.2021 who were not associated with the Company at the time of non-compliance. Same was verified from document filed by the Company on MCA 21 registry. The turnover of the company for the FY ending 31.03.2018 was Rs 33,60,000/- and Paid-Up capital of the company was Rs 1,00,000/-. Shri Ramesh Kumar Pal (AROC) was also present during the hearing.
In the said circumstances, penalty as applicable is being imposed upon the company and every officer of the Company who is in default as per Section 172 of the Companies Act, 2013 for violation of Section 158 of the Companies Act 2013 for the FY 31.03.2018.
2. The details of penalty imposed on the company, officers in default and others are shown in the table below:
| (A) | Name of person on whom penalty imposed (B) | Rectification of Default required
(C) |
Penalty Amount
(D) |
Additional Penalty (E) (*Per day of continuing default i.e. date of rectification of default less order issue date) | Maximum limit for Penalty (F) |
| 1 | KANCHAL FARM LAND PRIVATE LIMITED having CIN as U70102UP2012P TC051969 | 150000 | 0 | 300000 | |
| 2 | AMIT KANCHHAL having DIN as 01147459 |
50000 | 0 | 100000 | |
| 3 | SATYAJEET SINGH having DIN as 02804711 | 0 | 0 | 100000 | |
| 4 | RAHUL
AWASTHI having DIN as 10923226 |
0 | 0 | 100000 | |
| 5 | SACHIN KANCHHAL having DIN as 01334397 |
0 | 0 | 100000 | |
| 6 | MOHIT SETHI having DIN as
01851465 |
50000 | 0 | 100000 | |
| 7 | APARNA AGARWAL having DIN as 06626227 |
0 | 0 | 100000 |
3. The notified officers in default/noticee shall rectify the default mentioned above and pay the penalty, so applicable within 90 days of receipt of the order.
4. The notified officers in default/noticee shall pay the penalty amount via ‘e-Adjudication’ facility which can be accessed through the respective login IDs on the website of Ministry of Corporate Affairs and upload the copy of paid challan / SRN of e-filing (if applicable) on the ‘e-Adjudication’ portal itself. It is also directed that the penalty so imposed upon the officers in default shall be paid from their personal sources/income.
5. Appeal against this order may be filed in writing with the Regional Director, RD Delhi within a period of sixty days from the date of receipt of this order, in Form ADJ setting for the grounds of appeal and shall be accompanied by a certified copy of this order [Section 454 (5) & 454 (6) of the Act, read with Companies (Adjudication of Penalties) Rules, 2014].
6. For penal consequences of non-payment of penalty within the prescribed time limit, please refer Section 454(8) of the Companies Act, 2013.
Sanjay Bose,
Registrar of Companies
ROC Kanpur
