The Registrar of Companies, Chennai passed an adjudication order on 5 January 2026 imposing penalties for failure to maintain the statutory Register of Directors and Key Managerial Personnel. An investigation under Section 210(1)(c) found that the company did not properly maintain the register as required under Section 170 of the Companies Act, 2013 read with Rule 17 of the Companies (Appointment and Qualification of Directors) Rules, 2014 for the financial years 2014–15 to 2016–17. Based on the investigation report, penal action was initiated. As the company was under liquidation following completion of the insolvency process, liability was fixed on the officers in default under Section 172. After considering replies and hearing through authorised representatives, the Adjudicating Officer held the officers personally liable and imposed a penalty of ₹1,00,000 each, payable from personal sources. The order directs rectification of default and payment within 90 days, with a right of appeal to the Regional Director, Chennai.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Chennai
Registrar Of Companies, Block No.6,B Wing 2nd Floor, Shastri Bhawan 26, Haddows Road, Chennai, Tamil Nadu, India, 600034
Phone: 044-28276652/28276654
E-mail: roc.chennai@mca.gov.in
Order ID: PO/ADJ/12-2025/CN/01164 | Dated: 05/01/2026
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 172 OF THE COMPANIES ACT, 2013.
A. Appointment of Adjudicating Officer:
Ministry of Corporate Affairs vide itsGazette notification number S.O. 831(E) dated 24/03/2015 appointed undersigned as Adjudicating Officer in exercise of the powers conferred by section 454 of the Companies Act, 2013 [herein after known as Act] read with Companies (Adjudication of Penalties) Rules, 2014 for adjudging penalties under the provisions of this Act.
B. Company details:
In the matter relating to SHRI VEERGANAPATHI STEELS PRIVATE LIMITED ________________
Individual details:
In the matter relating to NARAYAN MAHESHWARI ________________
In the matter relating to RAJSHREE MAHESWARI ________________
C. Provisions of the Act:
If a company is in default in complying with any of the provisions of this Chapter and for which no specific penalty or punishment is provided therein, the company and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees, and in case of continuing failure, with a further penalty of five hundred rupees for each day during which such failure continues, subject to a maximum of three lakh rupees in case of a company and one lakh rupees in case of an officer who is in default.
D. Facts about the case:
1. Default committed by the officers in default/noticee – An investigation into the affairs of the company Shri.Veeraganapathi Steels Private Limited (CIN: U27104TN1997PTC039561) was conducted under Section 210(1)(c) of the Companies Act, 2013, by an Officer authorized by the Central Government wherein the observations of the Investigating Officer are as follows :
“It is observed from the documents submitted by Resolution Professional at the time of investigation that the company has not maintained proper register containing the particulars as per Rule 17 of the Companies (Appointment and Qualification of Directors) Rules 2014 for the financial years 2014-15, 2015-16 and 2016-17. Every company shall keep at its registered office a register of its directors and Key Managerial Personnel containing the following particulars as mentioned in Rule 17(1) of the Companies (Appointment and Qualification of Directors) Rules 2014. However, the company has not maintained the same properly as per the provisions of the Companies Act, 2013. Hence, the company has violated Section 170 of the Companies Act, 2013”.
Upon submission of the Investigation report, the Ministry/ Directorate has directed to initiate penal action against defaulters for violation of Section 170 of the Companies Act, 2013 read with Rule 17 of the Companies (Appointment and Qualification of Directors) Rules, 2014.
It is noticed that the company is under liquidation and therefore, the Officers in default are liable under Section 172 of the Companies Act, 2013.
2. Pursuant to the observations made during the investigation conducted into the affairs of the company, the adjudicating authority has issued notice for e-adjudication on 06.03.2025. The managing directors in their reply letter dt. 20.03.2025 has stated that the Company is now under liquidation following completion of CIRP before the NCLT and that its former directors received a show cause notice for alleged non-maintenance of the Register of Directors and Key Managerial Personnel. They explain that during CIRP, the Resolution Professional (RP) took custody of all records, but despite repeated emails since July 2019, no inventory or copies of documents were provided to them. After receiving the notice, they again requested the RP on 14 March 2025 for copies of the statutory registers but were given only certain physical registers, not electronic records or other files. They also contacted their corporate law consultants and obtained available copies of the Register of Directors and KMP for FY 2014?15, 2015?16, and 2016?17, which they have enclosed. They request withdrawal of the notice, seek a physical hearing due to age and health constraints, and ask for copies of all documents relied upon, including the investigation order, RP submissions, and investigation report.
Further, the Adjudicating Authority had issued notice on 11.04.2025 for e-hearing on 15.04.2025. Mr. Shri. VINEET MUNDHARA, FCA and FCS, Chartered Accountant in Practice, Shri. JAGDISH PRASAD MUNDHARA, FCS, Company Secretary in Practice, are the authorised representatives to attend the e-hearing, on behalf of the company and its Officers in default.
E.Order:
1. It is noticed that the investigation under Section 210(1)(c) into Shri Veerganapathi Steels Pvt. Ltd. found that the company failed to properly maintain the statutory Register of Directors and Key Managerial Personnel for the Financial Year 2014-15 to 2016-17, as required under Section 170 of the Companies Act, 2013 and Rule 17 of the Companies (Appointment and Qualification of Directors) Rules, 2014. Based on the investigation report, the Ministry has directed initiation of penal action against the officers responsible. Since the company is currently under liquidation, the officers in default are liable for action under Section 172 of the Companies Act, 2013.
2. The details of penalty imposed on the company, officers in default and others are shown in the table below:
| (A) | Name of person on whom penalty imposed (B) | Rectification of Default required
(C) |
Penalty Amount (D) | Additional Penalty (E) (*Per day of continuing default i.e. date of rectification of default less order issue date) | Maximum limit for Penalty (F) |
| 1 | NARAYAN MAHESHWARI having DIN as 01538829 | 100000 | 0 | 100000 | |
| 2 | RAJSHREE MAHESWARI having DIN as 01538835 | 100000 | 0 | 100000 |
3. The notified officers in default/noticee shall rectify the default mentioned above and pay the penalty, so applicable within 90 days of receipt of the order.
4. The notified officers in default/noticee shall pay the penalty amount via ‘e-Adjudication’ facility which can be accessed through the respective login IDs on the website of Ministry of Corporate Affairs and upload the copy of paid challan / SRN of e-filing (if applicable) on the ‘e-Adjudication’ portal itself. It is also directed that the penalty so imposed upon the officers in default shall be paid from their personal sources/income.
5. Appeal against this order may be filed in writing with the Regional Director, RD Chennai within a period of sixty days from the date of receipt of this order, in Form ADJ setting for 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].
6. For penal consequences of non-payment of penalty within the prescribed time limit, please refer Section 454(8) of the Companies Act, 2013.
B SRIKUMAR,
Registrar of Companies
ROC Chennai
