The Ministry of Corporate Affairs (MCA), acting through the Registrar of Companies (ROC) Goa, issued an adjudication order on October 16, 2025, against INDU PACKAGING (DAMAN) LIMITED and its three officers in default. The penalty was imposed under Section 454 of the Companies Act, 2013, for the contravention of Section 197, which governs the prescribed limits on managerial remuneration. The order found that during the Financial Year 2018-19, the company had paid remuneration to its directors that was in excess of the statutory limits set out in the Act. This oversight led to the company and its relevant officers being liable for penal action under Section 197(15) of the Act.
The Adjudicating Officer proceeded with the penalties after observing that the company, CIN U74950DD1996PLC002159, and its notified officers failed to submit any reply following the issuance of a Show Cause Notice on September 9, 2025. Based on the facts established during the inquiry, a penalty of ₹5,00,000/- was levied against INDU PACKAGING (DAMAN) LIMITED. Additionally, a penalty of ₹1,00,000/- was imposed on each of the three named officers in default: Vyoma Hemendra Sheth, Hemendra Himatlal Sheth, and Samarth Hemendra Sheth, resulting in a total imposed penalty of ₹8,00,000/-. The order directs that all parties must pay the applicable penalties within 90 days via the MCA’s e-Adjudication facility, with the specific instruction that penalties on the officers be paid from their personal income sources. The order further outlines that an appeal, if desired, must be filed with the Regional Director, RD Mumbai, within a sixty-day period.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Goa
ROC-cum-Official Liquidator, Ministry of Corporate Affairs, Corporate Bhawan, EDC Complex, Plot No.21, Patto, Panaji,
Goa, India, 403001
Phone: 0832-2438618/2438617
E-mail: roc.goa@mca.gov.in
Order ID: PO/ADJ/10-2025/GA/00720 Dated: 16/10/2025
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 197(15) 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 withCompanies (Adjudication of Penalties) Rules, 2014 for adjudging penalties under the provisions of this Act.
B. Company details:
In the matter relating to INDU PACKAGING (DAMAN) LIMITED [herein after known as Company] bearing CIN U74950DD1996PLC002159, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at PLOT NO16 GDDIC INDUSTRIALESTATE SOMNATH ROAD DAMAN NA DAMAN DAMAN AND DIU INDIA 396210
Individual details:
In the matter relating to VYOMA HEMENDRA SHETH [herein after known as individual] having DIN 00328449 and having its address at
In the matter relating to HEMENDRA HIMATLAL SHETH [herein after known as individual] having DIN 00331653 and having its address at
In the matter relating to SAMARTH HEMENDRA SHETH [herein after known as individual] having DIN 03596648 and having its address at
C. Provisions of the Act:
If any person makes any default in complying with the provisions of this section, he shall be liable to a penalty of one lakh rupees and where any default has been made by a company, the company shall be liable to a penalty of five lakh rupees.]
D. Facts about the case:
1. Default committed by the officers in default/noticee – During the course of Inquiry, it was observed by the Inquiry Officer that the company has paid excess managerial remuneration to its directors for the FY 2018-19. Hence the company has violated the section 197(1) of the Companies and are liable for penal action under section 197(15) of the Companies Act, 2013.
E. Order:
1. During the course of Inquiry, it was observed by the Inquiry Officer that the company has paid remuneration to its Directors in excess of the prescribed limits as per section 197 of the Companies Act, 2013 for the FY 2018-19. The company and its officers in default have violated the section 197 of the Companies Act, 2013 and are liable for penal action under section 197(15).
2.In this regard, A Show Cause Notice vide notice ID no. SCN/ADJ/05-2025/GA/01232 dated 09.09.2025 was issued to the company and its officers in default under section 454 r/w section 197 of the Companies Act, 2013 through E-adjudication Module, for failure to comply with the said provisions. However, no reply has been received from the company and its officers in default.
3. After considering the facts of the case, the Adjudicating Officer, in exercise of the powers conferred under the Companies Act, 2013, has imposed a penalty of Rs.5,00,000/- on the company and Rs.1,00,000/- each on officers in default for contravention of section 197 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 | INDU PACKAGING (DAMAN) LIMITED having CIN as U74950DD1996P LC002159 | 500000 | 0 | 500000 | |
| 2 | VYOMA HEMENDRA SHETH having DIN as 00328449 | 100000 | 0 | 100000 | |
| 3 | HEMENDRA HIMATLAL SHETH having DIN as 00331653 | 100000 | 0 | 100000 | |
| 4 | SAMARTH HEMENDRA SHETH having DIN as 03596648 | 100000 | 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 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.
Trupti Sharma,
Registrar of Companies
ROC Goa
