The Registrar of Companies, Chennai passed an adjudication order under section 454 of the Companies Act, 2013 imposing penalties for violation of section 82 read with Rule 8 of the Companies (Registration of Charges) Rules, 2014, punishable under section 86 of the Act. An inquiry under section 206(4) revealed that a charge of ₹80 lakh created in December 2000 continued to appear on the MCA portal despite no corresponding loan being reflected in the company’s financial statements for FY 2016–17. The company failed to file Form CHG-4 to intimate satisfaction of the charge within the prescribed time. Although the company contended that the charge related to an associate company and not to it, the Adjudicating Authority held that the charge stood in its name and statutory compliance was mandatory. Accordingly, penalties were imposed on the company and its directors, with directions to rectify the default and pay the penalty within the stipulated period, while granting a statutory right of appeal.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Chennai
Registrar Of Companies, Block No.6,B Wing 2nd Floor, Shastri Bhawan 26, Haddows Road, Chennai, Tamil Nadu, India, 600034
Phone: 044-28276652/28276654
E-mail: roc.chennai@mca.gov.in
Order ID: PO/ADJ/12-2025/CN/01070 | Dated: 15/12/2025
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 86 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 IND ECO VENTURES LIMITED [herein after known as Company] bearing CIN U24231TN1982PLC009345, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at KOTHARI BUILDING, 4TH FLOOR 114, M G ROAD, NUNGAMBAKKAM KOTHARI BUILDING, 4TH FLOOR 114, M G ROAD, NUNGAMBAKKAM NA CHIENNAI TAMIL NADU INDIA 600034
Individual details:
In the matter relating to BALA VENCKAT KUTTI _____________
In the matter relating to GNANAPRABHAKARAN KUTTUVA KRISHNAIYER_____________
In the matter relating to NIRANJAN RAOSAHEB JAGTAP _____________
C. Provisions of the Act:
If any company is in default in complying with any of the provisions of this Chapter, the company shall be liable to a penalty of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees
D. Facts about the case:
1. Default committed by the officers in default/noticee – An inquiry was conducted under Section 206(4) of the Companies Act 2013 in the matter of Ind Eco Ventures Limited (CIN: U24231TN1982PLC009345) by an Officer authorized by the Central Government wherein the observations of the Inquiry Officer are as follows:
“As per the MCA Portal, the company is having Charge Id 800014043 for an amount of Rs.80,00,000/- which is created on 05.12.2000. Upon examination of the Annual Report of the company for the Financial year 2016-17, there is no such loan existing. Hence, the company failed to satisfy the charge which is liable for penal action for not satisfying the charge with the Registrar”.
Section 82 of the Companies Act, 2013 provides- Company to Report Satisfaction of Charge- (1) A company shall give intimation to the Registrar in the prescribed form, of the payment or satisfaction in full of any charge registered under this Chapter within a period of thirty days from the date of such payment or satisfaction.
Provided that the Registrar may, on an application by the company or the charge holder, allow such intimation of payment or satisfaction to be made within a period of three hundred days of such payment or satisfaction on payment of such additional fees as may be prescribed.
Rule 8 of the Companies (Registration of Charges) Rules, 2014 provides- Satisfaction of Charge.
A company or charge holder shall within a period of three hundred days from the date of the payment or satisfaction in full of any charge registered under Chapter VI, give intimation of the same to the Registrar in Form No.CHG-4 along with the fee.
Hence, the company has violated Section 82 of the Companies Act,2013 read with Rule 8 of the Companies (Registration of Charges) Rules, 2014 and the company and its directors are liable under Section 86 of the Companies Act,2013.
Accordingly, on submission of the Inquiry Report by the Officer, the Regional Director, Ministry of Corporate Affairs, Chennai has directed to initiate necessary action against the defaulters of the provisions of the Companies Act, 2013.
2. The Adjudicating Authority has issued notice for e-Adjudication on 20.02.2025. The company vide letter dated 25.03.2025 submitted that during the Financial Year 2000-01, the Company did not avail of any secured loan and on analysing the Company’s Books of Account, the Company had an Unsecured loan to the tune of Rs.1,30,00,000/-. The Company further submits that the mentioned Charge ID 800014043 belongs to one of the associate company, Indowind Energy Limited. The Company further submitted that “the charge relates to an OD facility availed from Andhra Bank. Considering the information available and internal evalution, we are of view that the mentioned Charge ID belongs to one of our associate companies, Indowind Energy Limited. We have attached Form No.8 and Form 13 filed by Indowind Energy Limited, along with the cash counter receipt issued by the office of the Registrar of Companies, to support our claim.”
Further, the Adjudicating Authority has issued notice for e-hearing on 02.04.2025 for the hearing scheduled on 09.04.2025. Mr.R.Kannan, Practicing Company Secretary (Membership No.FCS. 6718) attended the e-hearing fixed on 09.04.2025 and made submissions that the violation may be adjudicated and reduce the penalty amount stated in the e-Adjudication notice.
E.Order:
1. It is noticed that upon conducting inquiry under Section 206(4) of the Companies Act, 2013, the company is having Charge ID 800014043 for any amount of Rs.80,00,000/- which is created on 05.12.2000 and there is no such loan existing in the Annual Report of the Company of the financial year 2016-17. In this regard, the Company ought to have filed Form CHG-4 intimating about satisfaction of charges to Registrar of Company and since, the Company had failed to comply, thereby the Company had violated Section 82 of the Companies Act, 2013 read with Rule 8 of the Companies (Registration of Charges) Rules, 2014 and the Company and its Directors are liable for action under section 86 of 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 | IND ECO VENTURES LIMITED having CIN as U24231TN1982P LC009345 | 500000 | 0 | 500000 | |
| 2 | BALA VENCKAT KUTTI having DIN as 00765036 | 50000 | 0 | 50000 | |
| 3 | GNANAPRABHA KARAN KUTTUVA KRISHNAIYER having DIN as 00918669 | 50000 | 0 | 50000 | |
| 4 | NIRANJAN RAOSAHEB JAGTAP having DIN as 01237606 | 50000 | 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 Chennai 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.
B SRIKUMAR,
Registrar of Companies
ROC Chennai
