The order concerns adjudication of penalty under Section 454 of the Companies Act, 2013 for violation of Section 173(1), which mandates holding the first board meeting within 30 days of incorporation. The company, incorporated on 11.03.2016, held its first board meeting on 15.05.2016, resulting in non-compliance. The violation was identified during an inquiry initiated under Section 206(4), and action was directed by the Regional Director. During the hearing, it was clarified that certain directors were not associated with the company at the time of default, which was verified from MCA records. After considering the facts, penalties were imposed under Section 450 on the company and officers in default. The company was penalized Rs. 2,00,000, while certain officers were penalized Rs. 50,000 each. Some individuals were not penalized due to lack of involvement during the default period. The order also directs payment within 90 days and provides for appeal.
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/02035 | Dated: 21/04/2026
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (THE ACT’) FOR VIOLATION OF SECTION 450 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 KASHI GRAMIN VIKAS MUTUAL BENEFIT NIDHI LIMITED [herein after known as Company] bearing CIN U65923UP2016PLC077103, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at PLOT NO. 250, WORD NO. 5 , LOKMANYA TILAK NAGAR DAK BANGLA ROAD NA CHANDAULI UTTAR PRADESH INDIA 232104
Individual details:
In the matter relating to JAI SHANKAR AGRAHARI ________________
In the matter relating to . BANARASI ________________
In the matter relating to PAVAN KUMAR CHAUBEY ________________
In the matter relating to PETER DAMIEN ________________
In the matter relating to RAJ KUMAR PANKAJ ________________
In the matter relating to MAHENDRA NATH PANKAJ ________________
C. Provisions of the Act:
If a company or any officer of a company or any other person contravenes any of the provisions of this Act or the rules made thereunder, or any condition, limitation or restriction subject to which any approval, sanction, consent, confirmation, recognition, direction or exemption in relation to any matter has been accorded, given or granted, and for which no penalty or punishment is provided elsewhere in this Act, the company and every officer of the company who is in default or such other person shall be l[liable to a penalty of ten thousand rupees, and in case of continuing contravention, with a further penalty of one thousand rupees for each day after the first during which the contravention continues, subject to a maximum of two lakh rupees in case of a company and fifty thousand rupees in case of an officer who is in default or any other person]
D. Facts about the case:
1. Default committed by the officers in default/noticee – The SCA of MCA vide its minutes dated 10.04.2020 directed to conduct the inquiry u/s. 206(4) of the Companies Act, 2013. During the Couse of Inquiry, Inquiring Officer has observed/pointed out that ? It has been observed from Form MGT-7 for the financial year 2016-17 that first board meeting was held on 15.05.2016 whereas Company has been incorporated on 11.03.2016. Company shall hold first board meeting within thirty days of the date of its incorporation as mandated under section 173(1) of the Companies Act, 2013. Hence, there is violation of Section 173(1) of the Companies Act, 2013. Penal action as contemplated under Section 450 of the Companies Act, 2013 may be initiated against the Company and its officers in default for violation of Section 173 (1) of the Companies Act, 2013.? The said violation was reported by the Inquiring Officer in his report dated 30.03.2022. Accordingly, the office of RDNR vide its No. Inquiry/206(4)/Kashi Gramin Nidhi/RD (NR) /2022/3308 dated 10.06.2022 directed this office to take necessary action for violation of Section 173(1) of the Companies Act, 2013 for holding delay first board meeting on 15.05.2016.
2. E hearing scheduled on 25.03.2026
E. Order:
1. During the Couse of Inquiry, Inquiring Officer observed/pointed out that Form MGT-7 for the financial year 2016-17 recorded that first board meeting of the company was held on 15.05.2016 whereas Company has been incorporated on 11.03.2016. Company should have held first board meeting within thirty days of the date of its incorporation as mandated under section 173(1) of the Companies Act, 2013. Hence, the penal action as contemplated under Section 450 of the Companies Act, 2013 be initiated against the Company and its officers in default for violation of Section 173 (1) of the Companies Act, 2013.
Show Cause Notice was issued on 09.01.2026 to the company and its officer-in-default. Mr. Jai Shankar Agrahari (03266735) appeared on behalf of the Company on 25.03.2026 through VC and submitted that that Mr. Banarasi having DIN as 08671111 has been appointed as director with effect from 28.01.2020, Mr. Pavan Kumar Chaubey having DIN as 08671116 has been appointed as director with effect from 28.01.2020, were not associated with the Company at the time of non-compliance. Same was verified from information of the Company available on the MCA 21 registry.
Mr. Peter Damien having DIN as 07467676 (Deceased as stated by Mr. Jai Shankar Agrahari during e hearing) was appointed as director on 11.03.2016 and ceased on 26.10.2016,. 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 450 of the Companies Act, 2013 for violation of Section 173 (1) of the Companies Act 2013.
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 | KASHI GRAMIN VIKAS MUTUAL BENEFIT NIDHI LIMITED having CIN as U65923UP2016P LC077103 | 200000 | 0 | 200000 | |
| 2 | JAI SHANKAR AGRAHARI having DIN as 03266735 | 50000 | 0 | 50000 | |
| 3 | . BANARASI having DIN as08671111 |
0 | 0 | 50000 | |
| 4 | PAVAN KUMAR CHAUBEY having DIN as 08671116 | 0 | 0 | 50000 | |
| 5 | PETER DAMIEN having DIN as 07467676 | 0 | 0 | 50000 | |
| 6 | RAJ KUMAR PANKAJ having DIN as 07467677 | 50000 | 0 | 50000 | |
| 7 | MAHENDRA NATH PANKAJ having DIN as 07467678 | 50000 | 0 | 50000 |
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
