In recent adjudication proceedings under the Companies Act, 2013, the Ministry of Corporate Affairs (MCA) has levied penalties on DGR Farms & Leisures Limited for not filing balance sheets since 2019. Here’s a detailed breakdown of the case:
Background: DGR Farms & Leisures Limited, a registered company under the Companies Act, 2013, failed to submit its balance sheets from 2019 onwards, violating Section 137(1) of the Act. Subsequent notices and inquiries were issued by the Registrar of Companies, Madhya Pradesh, leading to a hearing on 26th February 2024.
Penalties Imposed: After considering the case, MCA imposed penalties on the company and its officers-in-default under Section 137(3) of the Companies Act, 2013. The penalties were calculated based on the number of days of default for each financial year, totaling significant amounts.
Penalty Details: For each financial year from 2018-19 to 2021-22, penalties were imposed on the company and individual officers for non-filing of balance sheets. The penalties ranged from Rs. 58,400 to Rs. 1,67,900, depending on the duration of default and individuals involved.
Compliance Requirements: The adjudication order mandates the payment of penalties within 60 days through the MCA21 portal. Additionally, the company must file INC-28 along with the adjudication order copy and payment challans. Failure to comply within 90 days may lead to further fines or imprisonment.
Appeals and Further Actions: The order allows for appeals within 60 days to the Regional Director against the adjudication decision. Failure to comply with the order within 90 days may result in additional penalties or legal actions.
Conclusion: The case of non-filing of balance sheets by DGR Farms highlights the importance of statutory compliance under the Companies Act, 2013. Companies must ensure timely submission of required documents to avoid penalties and legal consequences.
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GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
Office of The Registrar of Companies, Madhya Pradesh
Sanjay Complex, ‘A’ Block, 3rd Floor,
Jayendraganj, Gwalior —474009.
No. ROC-G/Adj. Pen./u/s. 137(1)/DGR Farms/3783
Dated: 28 FEB 2024
1. M/s. DGR Farms & Leisures Limited, E-3, Senior MIG, House No. 2, Near Ganesh Mandir, Arera Colony, Huzur 462016, M.P.
E-mail I.D.: dgrgrouprewa®gmail.com
2. Rakesh Gupta S/o. Sh. Shiv Narayan Gupta
3. Umesh Gupta S/o. Sh. Ganesh Prasad Gupta, additional director
4. Mahendra Pratap Singh S/o. Sh. Chandra Vijay Singh, additional director
5. Shankar Lal Gupta S/o. Sh. Surya Bhan Gupta, director
6. Vijay Kumar Shukla S/o. Sh. Abhiman Chandra Shukla, additional director
7. Ashok Kumar Roy S/o. Sh. Mahendra Roy, additional director
8. Vikash Kumar Gupta S/o. Sh. Ramadhar Gupta, additional director
9. Umesh Kumar S/o. Sh. Chandra Kumar, additional director
10. Regional Director, North-Western Region, Ministry of Corporate Affairs, Ahmedabad (Gujarat).
11. E-governance cell for uploading the documents.
–
Yours faithfully,
(Mukesh Kumar Soni, ICLS)
Registrar of Companies,
Madhya Pradesh, Gwalior.
***
In the matter of Companies Act, 2013
And
In the matter of adjudication proceeding under sub-section (1) of Section 137 of the Companies Act, 2013.
And
In the matter of M/s. DGR Farms & Leisures Limited
(CIN- U01100MP2009PLCO22547)
Date of hearing 26th February, 2024
Appointment of adjudicating officer:
1. Ministry of Corporate Affairs vide its Gazette Notification No. A-42011/ 112/2014-Ad.II dated 24.03.2015 appointed undersigned as adjudicating officer in exercise of the powers conferred by Section 454 of the Companies Act, 2013 (hereinafter known as “Act” ) read with Companies (Adjudication of Penalties) Rules, 2014 for adjudicating penalties under the provisions of this Act.
Company:
2. Whereas company DGR Farms & Leisures Limited (CIN-U01100MP2009PLCO22547) [herein after known as company] is a registered company with this office under the provisions of Companies Act, 2013 having its registered office situated at E-3, Senior MIG, House No. 2, Near Ganesh Mandir, Arera Colony, Huzur 462016, M.P. 6- Malviya Nagar, Near IDBI Bank, Bhopal, Madhya Pradesh 462003, as per the MCA website.
| Sl. No. |
Particulars | Details |
| 1. | Paid-up capital (F.Y. 2017-18)
(i) Equity Share capital 5,00,000 (ii) Pref. share capital 1,19,88,000 |
1,24,88,000 |
| 2. | Turnover (F.Y. 2017-18) | |
| a. Revenue from operation | 10,36,273 | |
| b. Other income | NIL | |
| 3. | Holding company | No |
| 4. | Subsidiary company | No |
| 5. | Whether company registered under Section 8 | No |
| 6. | Whether company registered under any other Special Act | No |
3. Whereas as per information available on MCA21 data base, the company has not filed its statutory document i. e. Balance Sheet since 2019 to till date under Section 137(1) of the Companies Act, 2013. Hence, it appears that the company and its officers in defaults has violated the provisions of Section 137(1) of the Companies Act, 2013 and are liable for penal action u/ s. 137(3) of the Companies Act, 2013 for financial year 2018-19 to till date.
4. Subsequently, this office had issued show cause notice U/s. 137(1) to the company and its officers in default vide No. ROC-G/Adj.Pen./u/s. 137(1)/DGR Farms/3301 to 3309 dated 18.01.2024.
5. Thereafter, “Notices of Inquiry” vide No. ROC-G/Adj. Pen. /u/ s. 137(1)/DGR Farms/3424 to 3432 dated 30.01.2024 were issued to the company and its officers in default. As per [Rule 3(3), companies (Adjudication of Penalties) Rules, 2014 and the date of hearing was fixed on 09.02.2024 at 12 Noon in the office of Registrar of Companies, Madhya Pradesh, Sanjay Complex, A-Block, 3rd Floor, Jayendraganj, Gwalior.
6. On the date of hearing i.e. 09.02.2024, office has received a e-mail dated 09.02.204 from director Shri Umesh Gupta therein had requested to provide 15-20 days more as the company has already started preparing necessary documents and forms related with Section of the Companies Act, 2013.
7. Office has considered aforesaid requested and had sent mail dated 15.02.2024 to company and officer in default, therein the office has extend the time for hearing and had fixed a dated for hearing on 26.02.2024 at 3.00 P.M.
8. On the date of hearing i.e. 26.02.2024 at 3.00 P.M. no person or representative of the company has attended the hearing.
9. Order:
Having considered the facts and circumstances of the case and after taking into account the factors above and letter dated 18.01.2024 and 30.01.2024 issued by ROC, Gwalior were duly received by the office of the company, it is concluded that the company and its officers in default are liable for penalty as prescribed under Section 137(3) of the Act for default is made in complying with the requirements of Section 137(1) of the Act of the company viz. DGR Farms & Leisures Limited for financial year 2018-19 to 2021-22, in terms of Section 137(1) of the Act.
10. Accordingly, I am inclined to impose a penalty as prescribed under Sub-section 3 of section 137 of the Companies Act, 2013. The details of the penalty imposed on the company and officers in default are shown in the table below:
(Financial Year 2018-19 to 2021-22)
| Financial Year | Period | No. of days of defaults |
| (2018-19) | 30.10.2019 to 26.02.2024 | 1579 |
| (2019-20) | 30.10.2020 to 26.02.2024 | 1214 |
| (2020-21) | 30.10.2021 to 26.02.2024 | 749 |
| (2021-22) | 30.10.2022 to 26.02.2024 | 484 |
Penalty amount for Balance Sheet U/s. 137, Financial Year 2018-19
| Nature of default |
Relevant section under the Companies Act, 2013 |
Name of persons on whom penalty is imposed |
No. of days of default |
Total penalty as per Section 137(3) | Final penalty imposed |
| Non-filing of balance sheet |
S. 137(1) | On company | 1579 | Rs. 10,000/- + (100×1579) Rs. 1,67,900/- Maximum penalty Rs. 2,00,000/- |
Rs. 1,67,900/- |
| Rakesh Gupta | 1579 | Rs. 10,000/- + (100×1579) Rs. 1,67,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Umesh Gupta | 1579 | Rs. 10,000/- + (100×1579) Rs. 1,67,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Mahendra Pratap Singh | 1579 | Rs. 10,000/- + (100×1579) Rs. 1,67,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Shankar Lal Gupta | 1579 | Rs. 10,000/- + (100×1579) Rs. 1,67,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Vijay Kumar Shukla | 1579 | Rs. 10,000/- +.(100×1579) Rs. 1,67,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Ashok Kumar Roy | 1579 | Rs. 10,000/- + (100×1579) Rs. 1,67,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Vikash Kumar Gupta | 1549 | Rs. 10,000/- + (100×1549) Rs. 1,64,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Umesh Kumar | 1549 | Rs. 10,000/- + (100×1579) Rs. 1,67,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- |
Penalty amount for Balance Sheet U/s. 137, Financial Year 2019-20
| Nature of default |
Relevant section under the Companies Act, 2013 |
Name of persons on whom penalty is imposed |
No. of days of default |
Total penalty as per Section 137(3) | Final penalty imposed |
| Non-filing of balance sheet |
S. 137(1) | On company | 1214 | Rs. 10,000/- + (100×1214) Rs. 1,31,400/- Maximum penalty Rs. 2,00,000/- |
Rs. 1,31,400/- |
| Rakesh Gupta | 1214 | Rs. 10,000/- + (100×1214) Rs. 1,31,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Umesh Gupta | 1214 | Rs. 10,000/- + (100×1214) Rs. 1,31,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Mahendra Pratap Singh | 1214 | Rs. 10,000/-+'(100×1214) Rs. 1,31,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Shankar Lal Gupta | 1214 | Rs. 10,000/- + (100×1214) Rs. 1,31,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Vijay Kumar Shulda | 1214 | Rs. 10,000/- + (100×1214) Rs. 1,31,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Ashok Kumar Roy | 1214 | Rs. 10,000/- + (100×1214) Rs. 1,31,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Vikash Kumar Gupta | 1214 | Rs. 10,000/- + (100×1214) Rs. 1,31,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Umesh Kumar | 1214 | Rs. 10,000/- + (100×1214) Rs. 1,31,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- |
Penalty amount for Balance Sheet U/s. 137, Financial Year 2020-21
| Nature of default |
Relevant section under the Companies Act, 2013 |
Name of persons on whom penalty is imposed |
No. of days of default |
Total penalty as per Section 137(3) | Final penalty imposed |
| Non-filing of balance sheet |
S. 137(1) | On company | 749 | Rs. 10,000/- + (100×749) Rs. 84,900/- Maximum penalty Rs. 2,00,000/- |
Rs. 84,900/- |
| Rakesh Gupta | 749 | Rs. 10,000/- + (100×749) Rs. 84,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Umesh Gupta | 749 | Rs. 10,000/- + (100×749) Rs. 84,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Mahendra Pratap Singh | 749 | Rs. 10,000/- + (100×749) Rs. 84,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Shankar Lal Gupta | 749 | Rs. 10,000/- + (100×749) Rs. 84,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Vijay Kumar Shukla | 749 | Rs. 10,000/- + (100×749) Rs. 84,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Ashok Kumar Roy | 749 | Rs. 10,000/- + (100×749) Rs. 84,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Vikash Kumar Gupta | 749 | Rs. 10,000/- + (100×749) Rs. 84,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Umesh Kumar | 749 | Rs. 10,000/- + (100×749) Rs. 84,900/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- |
Penalty amount for Balance Sheet U/s. 137 Financial Year 2021-22
| Nature of ‘ default | Relevant section under the Companies Act, 2013 | Name of persons on whom penalty is imposed |
No. of days of default |
Total penalty as per Section 137(3) | Final penalty imposed |
| Non-filing of balance sheet |
S.137(1) | On company | 484 | Rs. 10,000/- + (100×484) Rs. 58,400/- Maximum penalty Rs. 2,00,000/- |
Rs. 58,400/- |
| Rakesh Gupta | 484 | Rs. 10,000/- + (100×484) Rs. 58,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Umesh Gupta | 484 | Rs. 10,000/- + (100×484) Rs. 58,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Mahendra Pratap Singh | 484 | Rs. 10,000/- + (100×484) Rs. 58,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Shankar Lal Gupta | 484 | Rs. 10,000/- + (100×484) Rs. 58,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Vijay Kumar Shulda | 484 | Rs. 10,000/- + (100×484) Rs. 58,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Ashok Kumar Roy | 484 | Rs. 10,000/- + (100×484) Rs. 58,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Vikash Kumar Gupta | 484 | Rs. 10,000/- + (100×484) Rs. 58,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- | ||
| Umesh Kumar | 484 | Rs. 10,000/- + (100×484) Rs. 58,400/- Maximum penalty Rs. 50,000/- |
Rs. 50,000/- |
11. As per record available on MCA21 data base, the company has filed Annual Return details are as under:
| Sl. No. | Name of document | SRN | Date of receipt |
| 1. | AOC-4 (2022-23) | F92659994 | 25.02.2024 |
12. I am of this opinion that penalty is commensurate with the aforesaid failure committed by the notice and penalty so imposed upon the officers-in-default shall be paid from their personal sources/income. It is further directed that penalty imposed shall be paid through the Ministry of corporate Affairs portal only as mentioned under Rule 3(14) of Company (Adjudication of Penalties) (Amendment) Rules, 2019 under intimation to this office for the financial year 2018-19 to 2021-22.
13. The penalty amount shall be remitted by the company through MCA21 portal within 60 days from the date of order. The company needs to file INC-28 as per the provisions of the act attaching the copy of adjudication order alongwith payment challans.
14. The company may approach to compounding for the period not covered under this order.
15. Any person aggrieved by the order of adjudicating authority under Section 3 of Section 454 may prefer an appeal to the Regional Director having jurisdiction in the matter.
16. Every appeal under sub-section (5) of section 454 shall be filed within 60 days from the date on which the copy or order made by the adjudicating authority is received by the aggrieved person and shall be in such form, manner and be accompanied by such fee as may be prescribed.
17. As per Section 454(8) (i) where a company fails to comply with the order made under sub-section (3) or sub-section (7) as the case may be within a period of 90 days from the date of receipt of the copy of the copy of the order, the company shall be punishable with fine which shall not be less than twenty five thousand but which may extend to five lakh rupees.
18. Where an officer of a company or any other person who is in default fails to comply with the order made under sub-section (3) or sub-section (7) as the case may be within a period of 90 days from the date of receipt of the order such officer shall be punishable with imprisonment which may extend to six months or with the fine which shall not be less than twenty five thousands rupees but which may extend to one lakh or with both.
19. This order is without prejudice to the rights available to this office to initiate separate action including but not limited to the penal actions for contraventions of related, incidental and/or continuing offences/ contraventions.
20. In terms of the provisions of sub-rule 3 of the Companies (Adjudication of Penalties) Rules, 2014 copy of the order is being sent to DGR Farms 86 Leisures Limited, E-3, Senior MIG, House No. 2, Near Ganesh Mandir, Arera Colony, Huzur 462016, M.P. Sh.Rakesh Gupta S/o. Sh. Shiv Narayan Gupta, director (DIN- 02732171), ___, Sh. Umesh Gupta S/o. Sh. Ganesh Prasad Gupta, additional director ___, Sh. Mahendra Pratap Singh S/o. Sh. Chandra Vijay Singh, additional director ___, Sh. Shankar Lal Gupta S/o. Sh. Surya Bhan Gupta, director ____, Sh. Vijay Kumar Shukla S/o. Sh. Abhiman Chandra Shukla, additional director (DIN-06420025), ____, Sh. Ashok Kumar Roy S/ o. Sh. Mahendra Roy, additional director, _______, Sh. Vikash Kumar Gupta S/o. Sh. Ramadhar Gupta, additional director ___, Sh. Umesh Kumar S/o. Sh. Chandra Kumar, additional director ____, Regional Director, North-Western Region, Ministry of Corporate Affairs, Ahmedabad and will also be uploaded on MCA website.
The adjudication notice stand disposed off with this order.
(Mukesh Kumar Soni, ICLS)
Registrar of Companies,
Madhya Pradesh, Gwalior.
Order pronounced on 26.02.2024
Place: Gwalior, Madhya Pradesh.
