The Institute of Company Secretaries of India (ICSI) has formally requested the Ministry of Corporate Affairs (MCA) to consider implementing a “Company Law and LLP Law Settlement Scheme, 2024” (CL&LLSS-2024). This proposal aims to address ongoing technical difficulties faced by companies and LLPs in filing statutory e-forms on the MCA-21 V3 portal. Challenges, such as issues with DSC registration, e-form downloading, master data updating, and pre-fill options, have led to delays in mandatory filings. Consequently, companies risk incurring penalties and facing legal actions under the Companies Act, 2013, specifically under Section 451, which imposes higher fines for repeated defaults. The proposed scheme would offer a one-time opportunity for companies to submit overdue filings without penalties, similar to relief schemes introduced in previous years, like the Company Law Settlement Scheme, 2014, and the Company Fresh Start Scheme, 2020. This approach would help mitigate the legal and financial consequences companies face due to unavoidable filing delays, thus promoting ease of business and compliance. ICSI remains committed to collaborating with the MCA to support stakeholders and ensure business operations are not hindered by technical issues.
THE INSTITUTE OF
Company Secretaries of India
IN PURSUIT OF PROFESSIONAL EXCELLENCE
Statutory body under an Act of Parliament
(Under the jurisdiction of Ministry of Corporate Affairs)
MCA: OCT/2024 | Dated: October 21, 2024
Ms. Deepti Gaur Mukerjee
Secretary
Ministry of Corporate Affairs
Government of India
Shastri Bhawan
New Delhi —110 001
Respected Madam,
Subject: Request for introduction of Company Law and LIP Law Settlement Scheme, 2024 (CL & LLSS-2024)
Greetings of the Day!!!
At the outset, the Institute of Company Secretaries of India expresses its sincere appreciation to the Ministry of Corporate Affairs (MCA) for its thoughtful approach towards stakeholders and its committed efforts to enhance the ease of doing business.
Further, as you are aware, the Institute as a part of its responsibility always thrives to communicate the concerns and issues of stakeholders to the Ministry, to ensure their timely resolution. In furtherance of our intent, we wish to draw your kind attention towards the practical difficulties faced in filing e-forms on MCA-21 V3 portal. As communicated in the past, the majority issues relate to DSC registration, e-Form downloading, master data updation, pre-fill issues etc. which impact filing of forms of significant number of stakeholders. Accordingly, the Institute receives numerous requests for extension of timelines for filing forms on the MCA-21 V3 portal.
Due to such technical glitches, the companies and LLPs are not able to complete their statutory filings within the time limit provided under the Law which leads to penalties and legal action against corporation. Additionally, the provisions as laid down under the Companies Act, 2013(the Act) establishes a stricter framework for defaulting companies, imposing higher additional fees. Section 451 of the Act includes a specific provision for increased fines in the event of repeated defaults.
In view of these issues and their consequences, we hereby request for providing a one-time opportunity to companies and LLPs to file their pending documents and e-forms on the MCA-21 V3 portal to make good their default and grant immunity from prosecution. This would help them avoid incurring higher fees, fines, and other penalties.
Recognizing these concerns and adopting a more lenient approach to promote ease of doing business, the Ministry has previously issued circulars to provide relief to stakeholders. These circulars have facilitated a fresh start through the Company Law Settlement Scheme, 2014 vide General Circular No. 34/2014 dated 12/08/2014, Company Fresh Start Scheme, 2020 vide General Circular no. 12/2020 dated 30/03/2020 and LLP Settlement Scheme, 2020 vide General Circular No. 13/2020 dated 30/03/2020.
In light of past precedents and the aforementioned submissions, we kindly request you to introduce a scheme called the “Company Law and LLP Law Settlement Scheme, 2024″ (CL&LLSS, 2024)”. This scheme would provide companies the opportunity to rectify their defaults by filing the overdue documents, condoning the delays, and granting immunity from prosecution.
We shall be happy to provide any further information or clarification that may be desired in this regard.
Thanking you
Yours faithfully
CS B Narasimhan
President,
The Institute of Company Secretaries of India
