MCA imposes Rs 50000 penalty on Xinpoming Technology for non-filing of DIR-3 KYC

Ministry of Corporate Affairs issued a penalty order against Xinpoming Technology Private Limited for violating Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014. The violation pertains to the non-filing of e-form DIR-3 KYC for Mr. Xie Zehua, whose Director Identification Number (DIN 08666841) was deactivated. Despite a show-cause notice and no response from the director or company, the Registrar of Companies, Uttar Pradesh, found the company in default under Section 450 of the Companies Act, 2013. The penalty includes a fine of ₹50,000 imposed on the defaulting director. Rule 12A mandates individuals with an active DIN to submit DIR-3 KYC annually by April 30 of the next financial year. Failure to comply attracts penalties of ₹10,000 for initial contravention and ₹1,000 for each day of continued non-compliance, up to ₹2 lakh for the company and ₹50,000 for officers. The default began on January 13, 2020, when the DIN was allotted. The company has 90 days to remit the penalty or may appeal within 60 days to the Regional Director (Northern Region).

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
OFFICE OF REGISTRAR OF
COMPANIES, Uttar Pradesh
37/17, Westcott Building, The Mall,
Kanpur-208001 (U.P.)
Phone : 0512 — 2310443/2310227
E-mail : roc.kanpur@mca.gov.in

ORDER FOR VIOLATION OF RULE 12A OF THE COMPANIES (APPOINTMENT AND QUALIFICATION OF DIRECTORS) RULES 2014^. AND READ WITH COMPANIES (ADJUDICATION OF PENALTIES) RULES 2014 & COMPANIES (AMENDMENT) ACT, 2020

IN THE MATTER OF XINPOMING TECHNOLOGY PRIVATE LIMITED.

1. The Ministry of Corporate Affairs vide its Gazette notification no. S.O. 831(E) dated 24.3.2015, has appointed the 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 adjudging penalties under the provisions of this Act.

2. The Company XINPOMING TECHNOLOGY PRIVATE LIMITED, has been registered under the provisions of the Companies Act, on 13.01.2020, and is having its registered office situated at FLAT NO. 2010, VERONA TOWER, MAHAGUN MODERNE, SECTOR 78, NOMA, Gautam Buddha Nagar, Uttar Pradesh,201301. The authorized capital of the Company is 1,000,000.00/-

3. During the course of Inquiry U/s. 206(4) of the Companies Act, 2013 it is observed from the MCA21 Registry that the DIN of Mr. Xie Zehua having DIN 08666841 has been deactivated due to non-filing of DIR-3 KYC and the director has not resigned till date. Therefore, it is non-compliance of Rule 12A of Companies (Appointment and Qualification of Directors) Rules, 2014 punishable under Section 450 of the Companies Act, 2013.

4. Provisions of the Act:-

Rule 12(A) of the Companies (Appointment and Qualification of Directors) Rules 2014 reads as under: –

“Every individual who has been allotted a Director Identification Number (DIN) as on 31st March of a financial year as per these rules shall, submit e-form DIR-3-KYC to the Central Government on or before 30th April of immediate next financial year.”

Section 450 of the Act reads as under:-

“Residual punishment to company and every officer of the company who is in default or such other person when no specific penalty or punishment provided.

Penalty of ten thousand rupees, and in case of continuing contravention, with a further penalty of one thousand rupees for each day after the first during which the contravention 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 or any other person.”

5. This office has issued show cause notice No, 07/041ADJ/2024/Xinpoming/12732 dated 7.2024 was issued to its officer in default under Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014. The officer in default has not furnished any reply to the said Show Cause Notice,.

6. Further, neither the defaulting director nor any representative of the director has either furnished his reply or filed the said documents which has further strengthened the apprehension that the Director of the company has failed to comply with the provisions of Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014, thereby attracting the penal provisions mentioned under Section 450 of the Act.

7. The date of default in the matter has been taken as 13.01.2020, i.e. when the DIN was allotted.

8. Having considered the facts and circumstances of the case and after taking into account the factors above, I hereby impose a penalty of Rs.50,000/- on the defaulting Directors under section 450 of the Companies Act, 2013 for failure to make compliance of Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014. It is of this opinion that penalty is commensurate with the aforesaid failure committed by the Noticee.

9. The Noticee shall pay the amount of penalty by way of Demand Draft in favour of “Pay & Accounts Officer, Ministry of Corporate Affairs, New Delhi, payable at Delhi, ithin 90 days receipt of this order. The Demand Draft shall be forwarded to this office Address.

10. Appeal against this order may be filed in writing with the Regional Director (Northern Region), Ministry of Corporate Affairs, CGO Complex, Lodi Road, New Delhi, within a period of sixty days from the date of receipt of this order, in Form ADI setting forth the grounds of appeal and shall be accompanied by a certified copy of this order. [Section 454(5) & 454(6) of the Act, read with Companies (Adjudication of Penalties) Rules, 2014].

11. Your attention is also invited to section 454(8) of the Companies Act, 2013, in the event of non-compliance of this order. In Case appeal is made 0/0 Registrar of Companies, U.P. may be informed along-with the penalty imposed & the payments made.

(Seema Rath)
Registrar of Companies & Adjudicating Officer
Uttar Pradesh, Kanpur.

No.07/04/Adj/2024/Xinpoming/  Dated     .2024