The Regional Director, South East Region, Ministry of Corporate Affairs, has issued an order regarding an appeal filed by Kautilya Warehousing Private Limited and its two directors. The appeal contested an adjudication order from the Registrar of Companies (ROC), Andhra Pradesh, which found the company in default of Section 203(1) of the Companies Act, 2013. The violation stemmed from the company’s failure to appoint a Whole-Time Company Secretary since November 2, 2018, despite its paid-up capital exceeding the statutory limit.
The ROC, after issuing a notice that went unaddressed by the company, imposed a penalty of Rs. 5,00,000 on Kautilya Warehousing Private Limited and Rs. 5,00,000 each on its two directors, Mr. Naidu Amrutesh Reddy and Mr. Arjun Somireddy, totaling Rs. 15,00,000. Following the appeal and a hearing, the Regional Director reviewed the case. The Regional Director subsequently modified the penalty, reducing it to Rs. 2,00,000 for the company and Rs. 1,00,000 for each director, bringing the total penalty to Rs. 4,00,000. The appellants have since paid these modified penalty amounts, leading to the disposal of the appeal.
F.No:9/01/ADJ/SEC.203 of 2013/ROC(AP)/RD(SER)/2024/1077 to 1081
BEFORE THE REGIONAL DIRECTOR, SOUTH EAST REGION
MINISTRY OF CORPORATE AFFAIRS, HYDERABAD
IN THE MATTER OF COMPANIES ACT, 2013
IN THE MATTER OF KAUTILYA WAREHOUSING PRIVATE LIMITED
1. M/s. KAUTILYA WAREHOUSING PRIVATE LIMITED
D No. 23, Lecturers Colony
Beside Mini by-pass Road,
Magunta Layout, Nellore,
Andhra Pradesh, India, 524003.
2. Naidu Amrutesh Reddy, Director
3. Mr. Arjun Somireddy, Managing Director
Date of hearing: 21.11.2024
Present: Mr. S. Vikas Reddy, PCS
ORDER
1. This is an appeal filed under section 454(5) of the Companies Act, 2013 by the above appellants in e-form ADJ vide SRN F89290357 dated 02.01.2024 against the adjudication order Petition No. ADJ72/203 OF 2023-24/842 dated 21.11.2023 under section 454 read with section 203 (6) of the Companies Act, 2013 passed by the Registrar of Companies, Andhra Pradesh for default in compliance with the requirements of Section 203 (1) read with Rule 8A of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
2. Registrar of Companies in his order of adjudication has stated that the company had failed to appoint the Whole-Time Company Secretary since the applicable provisions of the Act came into force i.e., on 02.11.2018 to till date despite paid up capital has exceeded the prescribed limit as stated in the provisions of Section 203(1) of the Companies Act, 2013.
3. ROC, Andhra Pradesh had issued notice dated10.10.2023 to the company and its defaulting officers with a request to attend/represent the matter on 30.10.2023. However, they have failed to attend the same. Further, Registrar of Companies Andhra Pradesh passed an order dated 21.11.2023 by fixing a penalty of Rs. 5,00,000/- for Company i.e., Kautilya Warehousing Private Limited and Rs. 5,00,000/- for each director i.e., Mr. Naidu Amrutpsh Reddy, Director and Mr. Arjun Somireddy, Director (total aggregating to Rs.15,00,000/-).
4 Aggrieved by the said order dated 21.11.2023, the applicants herein have filed the instant appeal and an opportunity of being heard a hearing was given by the then Regional Director to the Appellants on 21.11.2024. The authorized representative Mr. S. Vikas Reddy, PCS appeared on behalf of the appellants on 21.11.2024.
5. The then Regional Director upon the hearing the Authorized Representative and upon considering the facts of the case the penalty has been modified to an amount of Rs. 2,00,000/- for company and Rs. 1,00,000/- for each director who were officer in default i.e., Mr. Naidu Amrutesh Reddy and Mr. Arjun Somireddy amounting to Rs. 1,00,000/-each (total aggregating to Rs.. 4,00,000/-)
6. Accordingly, the appellants have paid the penalty i.e, the Company (Kautilya Warehousing Pvt Ltd) has paid the penalty amounting to Rs. 2,00,000/- and 2 directors i.e., Mr. Naidu Amrutesh Reddy and Mr. Arjun Somireddy had paid penalty amounting to Rs. 1,00,000/- each vide SRN’s 000894860, 000895349 and 000894728 dated 13.05.2025 respectively, which has been submitted vide letter dated 14.05.2025 and thereby complying with the order of the then Regional Director.
7. In view of the compliance made by the Applicants stated above in respect of the penalty which was modified by the then Regional Director and the same has been duly paid, therefore, this formal order is issued to the Appellants. The Appeal is hereby disposed of.
Issued under my hand and seal on this the 27th day of May 2025.
RICHA KUKREJA
REGIONAL DIRECTOR(S.E.R.)
HYDERABAD
