The Registrar of Companies, Mumbai I, acting as Adjudicating Officer under Section 454 of the Companies Act, 2013, passed an adjudication order dated 02.07.2026 for violation of Section 155 read with Section 159 of the Act. The matter arose from a suo motu adjudication application filed by Ms. Shrradha Setalvad admitting that she had obtained and possessed two Director Identification Numbers (DINs), with the first DIN allotted on 06.09.2011 and a second DIN allotted on 06.06.2020 without knowledge of the earlier allotment. A show cause notice was issued, and the applicant admitted the default without seeking an e-hearing. Considering the admitted default, the applicant’s suo motu disclosure, the finding that the default was not intentional and did not prejudice members, creditors or others dealing with the company, the Adjudicating Officer imposed a penalty of ₹54,340 under Section 159, comprising ₹10,000 for the first default and ₹44,340 calculated at ₹20 per day for the continuing default over 2,218 days. The applicant was directed to file Form DIR-5 for surrender of the duplicate DIN, pay the penalty within 90 days and was informed of the right to appeal before the Regional Director, Mumbai.
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/06-2026/MH/02455 Dated: 02/07/2026
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 SHRRADHA SETALVAD ————-
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 30.03.2026 submitted by Ms. Shrradha Setalvad, (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 the first DIN was applied by Abhishek Zaveri Events & Entertainment Company and she was allotted the first DIN (03615003) on 06.09.2011. Further, the applicant admitted that a fresh DIN Application was made without knowledge of earlier allotted DIN and she was allotted second DIN: 08755214 on 06.06.2020. 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 whether the Applicant has filed E-form DIR-5 for surrender of duplicate DIN.
2. Noticee did not request for E-hearing on E-adjudication portal. Since the Application is suo-motu and it is a case of admitted default, 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/06-2026/MH/04758 dated 17.06.2026 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 .A reply of the noticee to the said Show Cause Notice was received on the E-adjudication portal on 20.06.2026 and admitted the default.
C. Noticee did not request for E-hearing on E-adjudication portal. Since the Application is suo-motu and it is a case of admitted default, 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 instant suo motu adjudication application and submission of the Applicant, wherein, it has already been admitted that two DINs were applied, and noticee was in possession of two DINs. Further, 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-motu 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.20/- for each day after the first during which such default continued.
G. Thus, the period of default is considered from 06.06.2020 that is the date of obtaining second DIN till 02.07.2026 that is the date of this order which amounts to 2218 days. The Applicant shall be liable to a penalty of Rs. 10,000/- (Rupees Ten Thousand only) for first default and Rs. 20/- per day for further 2217 days that is Rs. 44,340/- (Rupees Forty-four Thousands Three Hundred Forty only) aggregating to Rs.54,340/- (Rupees Fifty-Four Thousands Three Hundred Forty 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.54,340/- (Rupees Fifty Four Thousands Three Hundred Forty only) under the penal provisions of Section 159 for default under Section 155 on the Applicant Director that is Ms. SHRRADHA SETALVAD.
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 | SHRRADHA SETALVAD having DIN as 08755214 |
File E-form DIR-5 for surrender of duplicate DIN. | 10000 | 44340 | 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
