The Registrar of Companies (ROC) in Ahmedabad has issued a penalty against SHANTI INORGANICS LIMITED and its directors for violating Section 203(3) of the Companies Act, 2013. The section prohibits a whole-time key managerial personnel (KMP) from holding a similar office in more than one company at the same time, with the exception of a subsidiary. The company filed a suo-moto application for adjudication after discovering the non-compliance.
The violation occurred when Avanishkumar Manojkumar Patel was appointed as the Chief Financial Officer (CFO) of SHANTI INORGANICS LIMITED on December 19, 2024. At the time of this appointment, he was already serving as the Managing Director of another company, Jagjanani Textiles Limited. The default period lasted from December 19, 2024, until January 28, 2025, when his designation was changed to Joint Managing Director to rectify the non-compliance.
In the final order, the ROC imposed a penalty of ₹500,000 on SHANTI INORGANICS LIMITED. Additionally, four individuals—Avanishkumar Manojkumar Patel, Kalpeshbhai Ambaprasad Raval, Manojbhai Jayantibhai Patel, and Suhani Avanishkumar Patel—were each fined ₹90,000. The order mandates that the penalty for the directors and key managerial personnel must be paid from their personal sources and within 90 days. The company is also given the option to file an appeal with the Regional Director in Ahmedabad within 60 days of receiving the order.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Ahmedabad
Registrar Of Companies, ROC Bhavan , Opp Rupal Park Society, Behind Ankur Bus Stop, Naranpura, Ahmedabad, Gujarat, India, 380013
Phone: 079-27438531, E-mail: roc.ahmedabad@mca.gov.in
Order ID: PO/ADJ/08-2025/AD/00585 Dated: 13/08/2025
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 203(5) 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 SHANTI INORGANICS LIMITED [herein after known as Company] bearing CIN U24100GJ2010PLC059218, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at PLOT NO.-2015,PHASE III GIDC,VATVA NA AHMEDABAD Gujarat India 382445
Individual details:
In the matter relating to AVANISHKUMAR MANOJKUMAR PATEL [herein after known as individual] having DIN 02724940 and having its address at FB 40-41, SECTOR-F, STERLING CITY Ahmedabad Gujarat India 380058
In the matter relating to KALPESHBHAI AMBAPRASAD RAVAL [herein after known as individual] having PAN AGZPR2055H and having its address at ___________ Ahmedabad Gujarat India 380008
In the matter relating to MANOJBHAI JAYANTIBHAI PATEL [herein after known as individual] having DIN 02724947 and having its address at___________ AHMEDABAD Gujarat India 380058
In the matter relating to SUHANI AVANISHKUMAR PATEL [herein after known as individual] having DIN 10879088 and having its address at ___________ Ahmedabad Gujarat India 380058
C. Provisions of the Act:
If any company makes any default in complying with the provisions of this section, such company shall be liable to a penalty of five lakh rupees and every director and key managerial personnel of the company who is in default shall be liable to a penalty of fifty thousand rupees and where the default is a continuing one, with a further penalty of one thousand rupees for each day after the first during which such default continues but not exceeding five lakh rupees.
D. Facts about the case:
1. Default committed by the officers in default/noticee – The company has changed its name from SHANTI INORGO CHEM (GUJ) LIMITED to SHANTI INORGANICS LIMITED w.e.f. 06.05.2025. In this case, for F.Y. 2024-25, the company had appointed Mr. Avanishkumar Patel as Chief Financial Officer (CFO) of the company w.e.f. 19.12.2024. However, Mr. Avanishkumar Patel was already appointed as a Managing Director of Jagjanani Textiles Limited a BSE listed company. After the appointment as a CFO immediately. He has given his resignation from the Post of CFO w.e.f. 25.01.2025 and then after Mr. Avanishkumar Patel was appointed as a Whole Time Director of the company. Mr. Avanishkumar Patel was a whole-time director of the company w.e.f. 25.01.2025. However, Mr. Avanishkumar Patel was already appointed as the Managing Director of Jagjanani Textiles Limited, a BSE listed company. Immediately, on the knowledge of Section 203 (3) of the Companies Act, 2013, the designation of Mr. Avanishkumar Patel has been changed to Joint Managing Director of the company w.e.f. 28.01.2015. The company has filed suo moto adjudication application for non-compliance of section 203(3) of the C.A. 2013. A whole-time key managerial personnel shall not hold office in more than one company except in its subsidiary company at the same time. The company has violated under Section 203(3) of the C.A. 2013 for the period from 19.12.2024 to 28.01.2025.
2. As per rules.
E. Order:
1. Pursuant to e-adjudication.
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 | SHANTI INORGANICS LIMITED having CIN as U24100GJ2010P LC059218 | 500000 | 0 | 500000 | |
| 2 | AVANISHKUMAR MANOJKUMAR PATEL having DIN as 02724940 | 90000 | 0 | 500000 | |
| 3 | KALPESHBHAI AMBAPRASAD RAVAL having PAN as AGZPR2055H | 90000 | 0 | 500000 | |
| 4 | MANOJBHAI JAYANTIBHAI PATEL having DIN as 02724947 | 90000 | 0 | 500000 | |
| 5 | SUHANI AVANISHKUMAR PATEL having DIN as 10879088 | 90000 | 0 | 500000 |
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 Ahmedabad 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.
Keerthi Narayana,
Registrar of Companies
ROC Ahmedabad
