pri Condonation of Delay Scheme, 2018- A Remedy for director disqualification Condonation of Delay Scheme, 2018- A Remedy for director disqualification


In the month of September, 2017, MCA de-activated the DINs of the directors who have not filed the annual returns of the Company. Due to this action taken by the Ministry of Corporate Affairs (MCA), Directors of those companies cannot be appointed in new Companies and no filing could be done of the existing Companies. MCA reported more than 3 lakh shell companies.

All the above actions by MCA created problems for the directors as directors cannot do business. Due to this, MCA came out with a remedy and gave one chance to the directors of these Companies by introducing Condonation of Delay Scheme, 2018.

Let me explain the procedure of Condonation of Delay Scheme, 2018 briefly and analyse it:

What is the time period?

Condonation of Delay Scheme, 2018 shall be into from w.e.f. 01st January, 2018 and shall remain in force upto 31st March, 2018 i.e a total period of 3 months to be given for Compliance.

Which forms can be filed:

All the annual return filing forms, Compliance certificates and Auditor appointment forms.

To whom is the scheme applicable?

Condonation of Delay Scheme, 2018 is applicable to those Defaulting Companies whose status in the records of ROC is active. If the company is struck off by ROC, then this scheme is not applicable.

Brief Procedure to be followed:

1. Firstly, DIN of the disqualified directors will be revived temporarily for filing the forms as per the Scheme.

2. The Company shall file all the forms with the additional fees maximum is 12 times the actual fee.

3. Post filing of all the annual return Forms, Company needs to seek Condonation of Delay by filing form E-CODS 2018, which would be introduced by ROC by Feb 20, 2018 as per the MCA Notification and the fees for the same is Rs. 30,000/-.

4. Once these forms are filed and the filing is properly done and approved, the DIN would be permanently activated.

If the defaulting Companies don’t file the form then the DIN of the disqualified directors which was temporarily activated would be be de activated permanently and would be considered disqualified only and action would be taken against these companies.

Above analysis is done on the basis of notification issued by MCA. Please find the link of the notification where the draft format of E-CODS form is also given.

The content is posted only for sharing knowledge. Author is not responsible for any damage caused. For any queries, author can be reached at or +91 9819244185.

Author Bio

Qualification: CA in Practice
Company: Co-founder of Budding Business & Makwana Sweta & Associates
Location: Mumbai, Maharashtra, India
Member Since: 20 Aug 2017 | Total Posts: 62
A Practicing Chartered Accountant with over 4 years of rich experience in Company Law, Audits, Accounts & taxation. She is a writer at her own blog She is keen in streamlining business accounts of the Company and provide Startup consultancy. View Full Profile

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