BJP professional cell, Mumbai has requested FM that The KYC for DIN Of Director should be once in 5 years or linked to be Aadhar etc. unless there are changes to be voluntarily complied and Even if there is delay a token fee to be levied (Say Rs. 100)  and not Rs.5000 which is nothing than extortion for Non compliances.

BJP professional cell, Mumbai

Date: 28/07/2021

To

Smt.Nirmala Sitharaman Madam,
Honorable Finance Minister
Ministry of Finance, North Block,
New Delhi

Shri Rao Inderjit Singh
Hon’ble Minister of State for Corporate Affairs
New Delhi

Respected Madam/Sir,

Subject: Suitable Changes/ relaxations to be incorporated in MCA Act, Rule & Provisions to provide relief to companies, directors

1. As per the MCA Rule 12A of the companies (Appointment & Qualifications of Directors) Rules 2014 & guidelines (Annual KYC of Directors in Form: DIR 3):

Every Director must comply DIN-KYC yearly basis with token fee of say Rs. 100 and if not done or delayed by even 1 day, he will be charged a penalty of Rs.5000 (Approx.) which is not with any other law for such Non-compliance.

May we request for

(I) The KYC for DIN Of Director should be once in 5 years or linked to be Aadhar etc. unless there are changes to be voluntarily complied

(ii) Even if there is delay a token fee to be levied and not Rs.5000 which is nothing than extortion for Non compliances

2. All company law related compliances from March 2020 onwards, where due dates including extended due dates may have been missed by the stakeholders, due to the ongoing COVID pandemic restrictions and/or affected due to personal or family health issues. In such cases, MCA is presently charging heavy additional Fees / penalties.

May we request for

Allowing all such compliances from March 2020 onwards, which have missed the due dates to be done without charging any additional fees/penalties

3. The Directors name has been removed for 5 Years for non-compliance on part of the company wherein they are appointed as Independent or Professional Director. The Company may be defaulter and would have not complied but why such directors should suffer.

May we request for

A simplified process for restoration of name of such directors, once he or she comes to know and wants to restore should be permitted without any reservation for no fault of him/her.

You would appreciate that the government is working on war footing basis for providing relaxation in various types of compliances that too in COVID situation, however, still the above issues are not addressed

This may not have been brought to your attention hence request your intervention for immediate redressal of this and similar issues

Thanks & Regards,

CA Shailesh R Ghedia
President:
BJP professional cell,
Mumbai

M:9869437888

Download Full Text of representation in PDF 

Author Bio

Join Taxguru’s Network for Latest updates on Income Tax, GST, Company Law, Corporate Laws and other related subjects.

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Whatsapp

taxguru on whatsapp GROUP LINK

Join us on Telegram

taxguru on telegram GROUP LINK

Review us on Google

More Under Company Law

2 Comments

  1. Bhawar Pal Singh says:

    Mr Shailesh,
    You are right, penalty is too high, it should be not more than₹100/-.
    During covid period ₹5000/- is too high for startup.
    Due to this type panalty , it will very difficult to doing the business.

  2. G Sarkar says:

    The penalty fees are outrageous and suffocating small startups. Small startup of two designated partner with 1 lakh capital will ends up 10% of the amount just delaying one day. Strangulating situations.

    Is there any update from the government regarding the fees? is there any chance it will change?

Leave a Comment

Your email address will not be published. Required fields are marked *

Search Posts by Date

September 2022
M T W T F S S
 1234
567891011
12131415161718
19202122232425
2627282930