MCA imposes penalty for non-filing of Annual Returns & Financial Statements

The Office of the Registrar of Companies, Rajasthan, Jaipur, has issued a penalty order against Easy Funds Finance Private Limited and its directors, Shri Vikas Modi and Shri Nitin Agarwal, for non-compliance with the Companies Act, 2013. The company failed to file its Annual Returns and Financial Statements for the fiscal years 2020-21 and 2021-22. The penalties are imposed under Section 454 of the Companies Act, 2013, and the Companies (Adjudication of Penalties) Rules, 2014, as well as amendments from 2015. Easy Funds Finance Private Limited and directors faces penalties of ₹6,74,200. The penalties cover non-filing of annual returns and financial statements and are calculated based on the duration of non-compliance. The order specifies that the penalties must be paid through the Ministry of Corporate Affairs portal. Appeals can be filed within sixty days from the receipt of this order. Failure to pay the penalty could result in additional fines or imprisonment for the defaulting parties.

GOVERNMEN OF INDIA
MINISTRY OF CORPORATE AFFAIRS
OFFICE OF REGISTRAR OF COMPANIES CUM OFFICIAL LIQUDIAOTR,
ATTACHED TO RAJASTHAN HIGH COURT, JAIPUR BENCH AT JAIPUR
CORPORATE BHAWAN, G/6-7, RESIDENCY AREA, CIVIL LINES, JAIPUR- 302001

ORDER FOR PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 READ WITH COMPANIES (ADJUDICTION OF PENALTIES) RULES, 2014 AND COMPANIES (ADJUDICATON OF PENALTIES AMENDEMENT RULES, 2015 FOR THE VIOLATION OF SECTION 92(4) OF THE COMPANIES ACT, 2013 READ WITH RULE 11(1) OF THE COMPANIES (MANAGEMENT AND ADMINISTRATION) RULES, 2014 AND SECTION 137(1) OF COMPANIES ACT, 2013 READ WITH RULE 12 (1) OF COMPANIES (ACCOUNTS), RULES, 2014 IN THE MATTER OF: –

01. Easy Funds Finance Private Limited, Company
No. 10, Lakhanda Wala Kunwa, Behind Old Powerhouse, Alwar, Rajasthan- 301001.
02. Shri Vikas Modi, Director
03. Shri Nitin Agarwal, Director

Respondents

Date of hearing-27.12.2023

Present: –
01 Shri Ruvit kumar, ROC-Cum-OL, Rajasthan, Jaipur
02. Shri Raunak Agrawal, AROC-cum-AOL, Rajasthan, Jaipur

ADJUDICATION ORDER

1. Appointment of Adjudicating Officer: –

WHEREAS the Ministry of Corporate Affairs vide its Gazette Notification No. SO 831 (E) dated 24.03.2015 appointed the Registrar of Companies/undersigned as Adjudicating Officer in exercise of the Power conferred by Section 454 of the Companies Act 2013 read with Companies (Adjudication of Penalties) Rules, 2014. The Registrar of Companies vide the Companies (Amendment) Act, 2019 is entrusted with power to adjudicate penalty as provided under Section 92(5) and 137(1) of the Companies Act, 2013.

2. Respondent Company:

WHEREAS Easy Funds Finance Private Limited (CIN- U65929RJ202OPTC070673) is registered with this office under the provisions of Companies Act, 2013 and having its registered office at Plot No. 10, Lakhanda Wala Kunwa, Behind Old Powerhouse, Alwar, Rajasthan- 301001.

3. Relevant provisions of the Companies Act, 2013: –

WHEREAS as per the provision of section 92 (4) of the Companies Act, 2013 “every company is required to file a copy of its annual return with the Registrar of Companies within sixty days from the date of the annual general meeting. In case no annual general meeting is held in a particular year, the annual return must be filed within sixty days from the date on which the meeting should have been held together with the statement specifying the reasons for not holding the annual general meeting, with such fees or additional fees as may be prescribed.”

WHEREAS as per provision of Rule 11 (1) of Companies (Management and Administration Rule, 2014) “Every company shall file its annual return in Form No. MGT-7 except One Person Company (OPC) and Small Company. One Person Company and Small Company shall file annual return from the Financial Year 2020-2021 onwards in Form No. MGT-7A.”

WHEREAS as per provision of section 92 (5) of the Companies Act, 2013 “If any company fails to file its annual return under sub-section (4), before the expiry of the period specified therein, such company and its every officer who is in default shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with further penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of two lakh rupees in case of a company and fifty thousand rupees in case of an officer who is in default.”

WHEREAS as per the provision of section 137 (1) of the Companies Act, 2013 “A copy of the financial statements, including consolidated financial statement, if any, along with all the documents which are required to be or attached to such financial statements under this Act, duly adopted at the annual general meeting of the company, shall be filed with the Registrar within thirty days of the date of annual general meeting in such manner, with such fees or additional fees as may be prescribed.”

WHEREAS as per provision of Rule 12 (1) of Companies (Accounts) Rules, 2014 “Every company shall file the financial statements with Registrar together with Form AOC-4 and the consolidated financial statements, if any, with form AOC-4 CFS.”

WHEREAS as per provision of section 137 (3) of the Companies Act, 2013 “If a company fails to file the copy of the financial statements under sub-section (1) or sub-section (2), as the case maybe, before the expiry of the period specified therein, the company shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with a further penalty of one hundred rupees for each day during which such failure continues, subject to a maximum of two lakh rupees, and the managing director and the Chief Financial Officer of the company, if any, and, in the absence of the managing director and the Chief Financial Officer, any other director who is charged by the Board with the responsibility of complying with the provisions of this section, and, in the absence of any such director, all the Directors of the company, shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with further penalty of one hundred rupees for each day after the first during which such failure continues, subject to a maximum of fifty thousand rupees.”

4. Facts of the Case:

→ That this office has received an e-mail dated 21.08.2023 from the Reserve Bank of India (RBI), Jaipur enclosing therewith a complaint dated 11.03.2021 of Shri Mukesh Kumar in the matter of respondent company.

→ During the course of examination of the complaint, it is observed that the respondent company has not filed its Annual Return(s) and Financial Statement(s) for the Financial Year 2020-21 and 2021-22. Therefore, this office has issued Show Cause Notice(s) vide dated 14.09.2023 to the respondents for the violation of section 92(4) of the Companies Act, 2013 read with Rule 11(1) of the Companies (Management and Administration) Rules, 2014 and section 137(1) of the Companies Act, 2013 read with Rule 12 (1) of Companies (Accounts), Rules, 2014 respectively. However, no reply in the matter has been received so far from the respondents.

→ Further, this office has issued Adjudication Notice(s) dated 06.12.2023 to the respondents and also fixed a date of hearing in the matter on 27.12.2023.

5. At the time of hearing on 27.122023, neither appeared on behalf of the respondents nor any communications have been received.

Accordingly, the matter was decided on the merits and observed that the respondent company has not filed its Annual Return(s) and Financial Statement(s) for the Financial Year 2020-21 and 2021-22 with the Registrar in relevant e-Form(s).

6. In view of the above facts, the undersigned has reasonable cause to believe that the provision of section 92(4) of the Companies Act, 2013 read with Rule 11(1) of the Companies (Management and Administration) Rules, 2014 and section 137 (1) of the Companies Act, 2013 read with Rule 12 (1) of Companies (Accounts), Rules, 2014 have not been complied with by the respondents for the Financial Year(s) 2020-21 and 2021-22 and therefore liable for penal action under section 92 (5) and 137(3) of the Companies Act, 2013 respectively. Accordingly, in exercise the power of 454 (3) of the Companies Act, 2013, I inclined to impose a penalty on the respondents, as under-.

I am of this opinion that penalty is commensurate with the aforesaid failure committed by the respondents and pe^–lalty 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.

7. Appeal against this order may be filed in writing with the Regional Director (NWR), Ministry of Corporate Affairs, Ahmedabad within a period of sixty days from the date of receipt of this order, in e-Form ADJ (available on Ministry website mca.gov.in setting forth the grounds of appeal and shall be accompanied by a certified copy of this order (section 454(5) & 454(6) of the Companies Act, 2013 read with Companies (Adjudicating of Penalties) Rules, 2014).

8. Attention is also invited to section 454(8)(i) and 454(8)(ii) of the Companies Act, 2013, which state that in case of non-payment of penalty amount, the company shall be punishable with fine which shall not be less than twenty five thousand rupees but which may extend to five lakh rupees and officer in default shall be punishable with imprisonment which may extend to six months or with fine which shalt not be less than twenty five thousand rupees but which may extend to one lakh rupees or both.

9. In terms of the provisions of sub-Rule (9) of Rule 3 of the Companies (Adjudication of Penalties) Rules, 2014, copy of the order is being sent to the following: –

(I) EASY FUNDS FINANCE PRIVATE LIMITED at Plot No. 10, Lakhanda Wala Kunwa, Behind Old Powerhouse, Alwar, Rajasthan- 301001.

(II) Shri Vikas Modi _________________

(III). Shri Nitin Agarwal  _________________

(IV). The Regional Director, NWR, Ministry of Corporate Affairs, Ahmedabad at ROC Bhavan, Opp. Rupal Park Society, Behind Ankur Bus Stop, Naranpura, Ahmedabad, Gujarat- 380 013

The adjudication notice(s) stands disposed off with this order.

(RUVIT KUMAR)
ROC-cum-OL & Adjudicating officer,
Rajasthan, Jaipur

F. No : ROC/JPR/ Comp./Complaint/942

Dated: 20/05/2024