These days quite some number people are getting Show Cause Notice under section 266G of the Companies Act 1956.

What’s this notice all about?

As per Section 266C of the Companies Act 1956, “No individual, who had already been allotted a Director Identification Number under Section 266B, shall apply, obtain or possess another Director Identification Number (DIN)”.

Thus, all those who intentionally or unintentionally possess multiple DINs are getting the aforementioned notice.

What’s the solution?

In case if you do not know the number of DINs which have been approved in your name then the same shall be mentioned in the aforementioned Notice and in case if you haven’t got the notice so far then you may check, whether you possess multiple DINs, on MCA21 web portal. Thus, after knowing the number of DINs which have been approved in your name, you need to select the one which you want to keep and surrender the rest by filing the requisite application(s) in Form DIR-5, online/offline on case to case basis, with the Office of Regional Director (Ministry of Corporate Affairs).

Once the extra DINs have been duly surrendered, you need to file for Compounding of offence with the Company Law Board via Form GNL-1.

Please do not take this Notice lightly as ignorance might lead to harassment which, in most cases, would be uncalled for.

Kindly note:

  1. In case if you had applied for DIN earlier then kindly check the status of the same before applying for DIN again.
  2. In case if you have been issued multiple DINs then do the needful to surrender those extra DINs.

Act timely and live happy.

(Compiled by  CA Sahil Jolly – Jolly & Co. Chartered Accountants, Contact: +91-9999830077, Email : [email protected])

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  1. Manjur Alad says:

    In Majority cases, this notices are for some technical flow in ROC portal. (in notices the allotted DIN’s are issued on same days), which is practically not possible in most cases, though department forces DIN holder to undergo all such cumbersome litigation’s.

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June 2021