MCA Imposes ₹3.86 Lakh Penalty for Dual DIN Possession Under Companies Act

On July 15, 2025, the Registrar of Companies, Telangana, Hyderabad, issued an order imposing a penalty on Mr. Vamsi Anirudh Krishna Dhaduvai (DIN: 01442458) for violating Section 155 of the Companies Act, 2013, which prohibits an individual from possessing more than one Director Identification Number (DIN). Mr. Dhaduvai had obtained his first DIN on June 13, 2007, and holds directorships in M/S Sneha Cold Storage Private Limited and M/S. Foster Cold Storage Private Limited. However, he inadvertently obtained a second DIN (10016672) on August 23, 2022, and subsequently served as a Director in M/S. Cold Links LLP.

Upon realizing this contravention, Mr. Dhaduvai filed a suo-moto adjudication application with the Registrar of Companies on August 23, 2024, seeking to surrender the second DIN, which was processed on June 25, 2024. The violation period spanned 672 days, from August 23, 2022, to June 25, 2024. The penalty for such a violation, as per Section 159 of the Companies Act, 2013, includes a one-time penalty of up to fifty thousand rupees and a further penalty of five hundred rupees for each day the default continues. After a hearing on September 11, 2024, the Adjudicating Officer imposed a total penalty of Rs. 3,86,000 (Rs. 50,000 for the initial default plus Rs. 3,36,000 for the 672 days of continuing default).

Mr. Dhaduvai is required to pay this penalty within 90 days of receiving the order and file Form INC-28 with proof of payment. The order emphasizes that the penalty must be paid from his personal funds. Non-compliance with the order may result in further penal action under Section 454(8) of the Companies Act, 2013. The order also informs the director of his right to appeal the decision with the Regional Director (South East Region), Hyderabad, within 60 days.

GOVERNMENT OF INDIA
OFFICE OF THE REGISTRAR OF COMPANIES, TELANGANA, HYDERABAD
2ND FLOOR, CORPORATE BHAWAN, BANDLAGUDA, NAGOLE, HYDERABAD — 500 068

File. ROCH/Adj.Ord.454-155/Vamsi Anirudh/DIN: 01442458/2025/886  Dated: 15/07/2025

ORDER OF ADJUDICATION OF PENALTY UNDER SECTION 454 OF COMPANIES ACT, 2013 READ WITH RULE 3 OF THE COMPANIES (ADJUDICATION OF PENALTIES) RULES, 2014 FOR VIOLATION OF PROVISIONS OF SECTION 155 OF THE COMPANIES ACT, 2013 READ WITH RULE 11 OF THE COMPANIES (APPOINTMENT OF DIRECTORS) RULES, 2014 FRAMED THEREIN BY MR VAMSI ANIRUDH KRISHNA DHADUVAI, DIRECTOR (DIN: 01442458)

Ministry of Corporate Affairs vide its Gazette Notification No. A-4201 1/112/2014-Ad. II dated 24.03.2015 has appointed the undersigned as Adjudicating Officer in exercise of the powers conferred by section 454 of the Companies Act, 2013 (hereinafter referred to as Act) read with companies (Adjudication of Penalties) Rules, 2014 for adjudging penalties under the provisions of Companies Act, 2013.

2. Mr. Vamsi Anirudh Krishna Dhaduvai. Director (DIN: 01442458) has submitted a suo-moto adjudication application dated 21.08.2024 with office of Registrar of Companies, Hyderabad on 23.08.2024 for violation of section 155 of the Act read with Rule 11 of Companies (Appointment of Directors) Rules, 2014. It is seen from the application that Mr. Vamsi Anirudh Krishna Dhaduvai obtained DIN (Director Identification Number) No. 01442458 on 13.06.2007. He obtained his first DIN, and he was appointed as director and still holding directorships in M/S Sneha Cold Storage Private Limited and M/S. Foster Cold Storage Private Limited.

3. Later the applicant applied for the second DIN and was allotted DIN: 10016672 vide DIN approval letter dated 23.08.2022 and was appointed as Director in M/S. Cold Links LLP (LLPIN: ABC-1779). However, the applicant has come to realize that the acquisition of second DIN (10016672) was inadvertent and in contravention of the Act, following which he applied for surrendering the second DIN vide e-form DI R-5 (SRN AA8662554) on 25.06.2024. Hence. he has violated the provisions of section 155 of the Act, which is punishable under section 159 of the Act, for which this adjudication application has been made.

4. A hearing for the Applicant, represented by Mr. Arun Marepally, Practicing Company Secretary as per provisions of section 454(4) of the Companies Act, 2013 on 11.09.2024 in the 0/o Registrar of companies, Hyderabad has been conducted after issuance of hearing notice dated 09.09.2024.

5. As per the provisions of section 155 of the Act, no individual who has already been allotted a Director Identification Number under section 154, shall apply for, obtain or possess another Director Identification Number.

6. As per the provisions of section 159 of the Act, if any individual or director of a company makes any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is continuing one, with a further penalty which may extend to five hundred rupees for each day after the first during which the default continues.

7. It is established from the application & records that there is a violation of section 155 of the Act for the duration of 23.08.2022 to 25.06.2024 i.e.672 days which is punishable under section 159 of the Act which provides for a maximum one-time penalty of fifty thousand rupees and further maximum penalty of five hundred rupees for each day after the first during which the default continues. Hence, having considered the facts and circumstances of the case and the submissions made in the application as detailed above, and in exercise of the powers vested under section 454(3)(a) of the Companies Act 2013, I am inclined to impose the penalty as prescribed under Section 159 of the Companies Act, 2013. The details of the penalty imposed on the Director in default is given in the table below:

8. The director is hereby directed to pay the penalty amount as tabulated above within 90 days from the date of receipt of this Order and tile Form INC-28 attaching a copy of the Order and payment challans. In the case of director, such penalty amount is required to be paid out of their own funds. The noticee shall pay the said amount is required to be paid out of their own funds. The notice shall pay the said amount of penalty online by using the website www.mca.gov.in (Miscellaneous head) specifying the details of this Order and the notice who is paying the penalty.

9. Appeal, if any. against this Order may be tiled with the Regional Director (South East Region), Hyderabad, within a period of 60 days from the date of receipt of this Order in Form ADJ setting forth the grounds of appeal and shall be accompanies by a certified copy of this Order.

10. Your attention is also invited to section 454(8) of the Companies Act, 2013 in case of non­compliance of this Order wherein necessary penal action will be initiated under 454(8)(i) and (ii) of the Companies Act, 2013 against the company and directors/key managerial personnel without further notice in the matter.

(PARVINDER SINGH, I.C.L.S)
REGISTRAR OF COMPANIES
TELANGANA, HYDERABAD