The Registrar of Companies, Mumbai-I imposed a penalty under Section 159 of the Companies Act, 2013 on an individual for obtaining and possessing two Director Identification Numbers (DINs) in violation of Section 155 of the Act. The applicant had originally obtained a DIN in July 2019 and later inadvertently obtained a second DIN in August 2022 during incorporation of an LLP. Through a suo motu adjudication application, the applicant admitted the duplication and sought adjudication. The ROC observed that the default was not intentional and did not prejudice the interests of members, creditors, or other stakeholders. Taking into account the bona fide conduct and mitigating circumstances, the adjudicating authority imposed a penalty of Rs. 10,000 for the initial default along with Rs. 29 per day for the continuing default period of 1,359 days, aggregating to Rs. 49,411. The order directed payment within 90 days and granted liberty to file an appeal before the Regional Director, Mumbai within sixty days.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Mumbai I
100, Everest, Marine Drive, Mumbai, Maharashtra, India, 400002
Phone: 022-22812627
E-mail: roc.mumbai@mca.gov.in
Order ID: PO/ADJ/05-2026/MH/02123 Dated: 13/05/2026
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 159 OF THE COMPANIES ACT, 2013.
A. Appointment of Adjudicating Officer:
Ministry of Corporate Affairs vide its Gazette notification number S.O. 698(E) dated 10/02/2026 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. Individual details:
In the matter relating to SHIPRA SEETARAM SHETTY [herein after known as individual] having DIN 08517792 and having its address at ROW HOUSE 8 & 9, PLOT NO 20 PRANAM SUKHWANI RESIDENCY MORWADI PIMPRI PUNE MAHARASHTRA INDIA 411018
C. Provisions of the Act:
If any individual or director of a company makes any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which may extend to five hundred rupees for each day after the first during which such default continues.
D. Facts about the case:
1. Default committed by the officers in default/noticee – Whereas, the Registrar of Companies, Mumbai-I (hereinafter referred to as the ROC, Mumbai I) is in receipt of a suo-motu Adjudication Application dated 27.01.2026 submitted by Ms. Shipra Shetty (hereinafter referred to as the Applicant) under Section 454 read with Section 159 of the Companies Act, 2013 for default under Section 155 of the Act on account of obtaining duplicate Director Identification Number (DIN).
Whereas Section 155 of the Act reads as follows:
No individual, who has already been allotted a Director Identification Number under section 154, shall apply for, obtain or possess another Director Identification Number.
Whereas the Applicant stated that she had applied for and was allotted the first DIN : 08517792 on 23.07.2019. Further, the applicant admitted in her application that at the time of incorporation of Company namely Swaram Ineteriros LLP, she inadvertently applied for and was allotted second DIN: 10016752 on 23.08.2022. Thus, the Applicant was in possession of two DINs in contravention of the provisions of Section 155 of the Companies Act, 2013.
The Applicant is requested to submit the details of E-form DIR-5 for surrender of duplicate DIN, if any.
2. No reply received from the noticee on E-adjudication portal. The Adjudicating officer is of the view that no E-hearing is required in the instant case.
E. Order:
1. A Show Cause notice bearing ID: SCN/ADJ/03-2026/MH/0393 dated 09.03.2026 was issued to the Noticee on the E-adjudication portal under Section 454 read with Section 159 for default under Section 155 of the Act.
B.No reply received from the noticee on E-adjudication portal.
C.The Adjudicating officer is of the view that no E-hearing is required in the instant case.
D.Rule 3(12) of the Companies (Adjudication of Penalties) Rules, 2014 provides that while adjudging quantum of penalty, the adjudicating officer shall have due regard to the following factors, namely:- (a) size of the company; (b) nature of business carried on by the company; (c) injury to public interest; (d) nature of the default; (e) repetition of the default; (f) the amount of disproportionate gain or unfair advantage, wherever quantifiable, made as a result of the default; and (g) the amount of loss caused to an investor or group of investors or creditors as a result of the default:
E.On perusal of the suo motu adjudication application and submission made thereunder, it is observed that the default was not intentional and not of such nature as will prejudice the interests of the members or creditors or others dealing with the Company.
F.Thus, I am of the view that given the bonafide action on part of the Applicant in submitting the suo-moto adjudication application and the above-mentioned mitigating circumstances, the quantum of penalty shall be Rs. 10,000/- for first default and further penalty of Rs.29/- for each day after the first during which such default continued.
G.Thus, the period of default is considered from 23.08.2022 that is the date of obtaining second DIN till 13.05.2026 that is the date of this order which amounts to 1360 days. The Applicant shall be liable to a penalty of Rs. 10,000/- (Rupees Ten Thousand only) for first default and Rs. 29/- per day for further 1359 days that is Rs. 39,411/- (Rupees Thirty-Nine Thousands Four Hundred Eleven only) aggregating to Rs.49,411/- (Rupees Forty Nine Thousands Four Hundred Eleven only).
H.Now, in exercise of the powers conferred on the Adjudicating Officer vide Notification dated 24th March 2015, having considered the facts and circumstances of the case, show-cause notice sent and reply received thereto, I hereby impose a penalty of Rs.49,411/- (Rupees Forty Nine Thousands Four Hundred Eleven only) under the penal provisions of Section 159 for default under Section 155 on the Applicant Director that is Ms. SHIPRA SEETARAM SHETTY.
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 | SHIPRA SEETARAM SHETTY having DIN as 08517792 | NA | 49411 | 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 Mumbai 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.
Chandan Kumar,
Registrar of Companies
ROC Mumbai I
