On October 9, 2024, the Ministry of Corporate Affairs issued a notification regarding the Companies (Adjudication of Penalties) Second Amendment Rules, 2024, under the authority of the Companies Act, 2013. This amendment introduces a crucial change to the existing Companies (Adjudication of Penalties) Rules, 2014, specifically in sub-rule (1) of rule 3A. A new proviso stipulates that any proceedings already pending before an Adjudicating Officer or Regional Director at the time of this amendment will continue according to the rules that were in place prior to the amendment. The updated rules aim to ensure consistency in handling ongoing cases despite the regulatory changes. The amendment is effective immediately upon publication in the official gazette. Prior to this amendment, the Companies (Adjudication of Penalties) Rules were last revised in August 2024 and February 2019.
MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 9th October, 2024.
G.S.R. 630(E).—In exercise of the powers conferred by section 454 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Adjudication of Penalties) Rules, 2014, namely: –
1. (1) These rules may be called the Companies (Adjudication of Penalties) Second Amendment Rules, 2024.
(2) They shall come into force from the date of their publication in the official gazette.
2. In the Companies (Adjudication of Penalties) Rules, 2014, in sub-rule (1) of rule 3A, the following proviso shall be inserted, namely:-
“Provided that the proceedings pending before the Adjudicating Officer or Regional Director on the date of such commencement shall continue as per provisions of these rules existing prior to such commencement.”.
[F. No. 1/25/2013-CL-V(Part)]
MANOJ PANDEY. Addl. Secy.
Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3, Sub-section(i), vide number G.S.R. 254(E), dated the 31st March, 2014 and subsequently amended vide notification number G.S.R. 131(E) dated 19th February, 2019 and vide notification number G.S.R. 476(E) dated 5th August, 2024.
