The Registrar of Companies (ROC) in Hyderabad has issued an order against Virupaksha Organics Limited and four of its directors for non-compliance with the Companies Act, 2013. The company had failed to constitute a Nomination and Remuneration Committee from April 1, 2014, to May 10, 2023. The company initiated the process by filing a suo-motu compounding application, but the Regional Director directed the matter for adjudication, stating that the offense was a continuing one and thus not suitable for compounding.
Following this directive, the ROC issued a show cause notice to the company and its officers. The company and most of the officers responded and opted out of an e-hearing. One officer, however, requested an extension but failed to submit a reply. After considering the information from the company’s application and the MCA Portal, the adjudicating authority imposed penalties. The order imposes a penalty of ₹5,00,000 on the company and ₹1,00,000 each on the four officers in default. The company and officers have 90 days to pay the penalties, with the individual officers’ penalties to be paid from their personal funds. An appeal can be filed with the Regional Director within 60 days of receiving the order.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Hyderabad
Registrar Of Companies, 2nd Floor, Corporate Bhawan, GSI Post,Nagole, Bandlaguda, Hyderabad, Telangana, India, 500068
Phone: 040-29805427/29804327, E-mail: roc.hyderabad@mca.gov.in
Order ID: PO/ADJ/09-2025/HD/00672 Dated: 18/09/2025
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 178(8) OF THE COMPANIES ACT, 2013.
A. Appointment of Adjudicating Officer:
Ministry of Corporate Affairs vide its Gazette 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 VIRUPAKSHA ORGANICS LIMITED [herein after known as Company] bearing CIN U24110TG1997PLC028281, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at PLOT NO B1 & B2, IDA, GANDHINAGAR KUKATPALLY, MEDCHAL MALKAJHIRI DISTRICT NA HYDERABAD Rangareddi Telangana India 500037
Individual details:
In the matter relating to CHANDRA MOULISWAR REDDY GANGAVARAM [herein after known as individual] having DIN 00046845 and having its address at 8-3-169/143/A 1st Fllor, Siddartha Nagar Near Krishna kanth Park, S.R Nagar Hyderabad Telangana India 500038
In the matter relating to BALASUBBA REDDY MAMILLA [herein after known as individual] having DIN 01998852 and having its address at 8-3-169/1, FLAT NO. 301, PREETHAM RESIDENCY, SIDDARTHA NAGAR, BEHIND VENGALA RAO NAGA R, HYDERABAD Telangana India 500038
In the matter relating to CHANDRASEKHAR REDDY GANGAVARAM [herein after known as individual] having DIN 03534167 and having its address at VILLA NO 250, HILL COUNTY, ROAD NO 14 NEAR SREEERAM SCHOOL Qutubullapur K.V.Rangareddy Telangana India 500090
In the matter relating to SINGAMSETTY PRATHAP KUMAR [herein after known as individual] having PAN AVKPS0933P and having its address at FLAT 102, GIRIJA AIRLINES ARCADE, TEMPLE ROCK ENCL SECUNDERABAD Telangana India 500009
C. Provisions of the Act:
(8) In case of any contravention of the provisions of section 177 and this section, the company shall be liable to a penalty of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of one lakh rupees
D. Facts about the case:
1. Default committed by the officers in default/noticee – Company has submitted a suo moto compounding application dated 17.03.2025 in respect of non-compliance of Section 178(1) of the Companies Act, 2013 read with Rule 6 of the Companies (Meeting of Board and its Powers) Rules, 2014 and Rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014 punishable under Section 178(8) of the Companies Act, 2013 for the default in the constitution of Nomination and Remuneration Committee of the Board during the period from 01.04.2014 to 10.05.2023. The Regional Director (SER), Hyderabad has disposed of the compounding application vide order dated 08.08.2025 with direction that since the offence is a continuing offence, it will fall under adjudication and not compounding and ROC is directed to cover entire period in adjudication keeping in view of the amendment of provisions of section 178(8) of the Companies Act, 2013.
2. The company and all officers in default have submitted replies to the Show Cause Notice and opted for ?no hearing? except Sri. Singamsetty Prathap Kumar who has even though sought extension of time up to 04.09.2025 for submission of reply to Show Cause Notice neither replied nor opted for E-Adjudication hearing within the stipulated time.
E. Order:
1. The company M/s VIRUPAKSHA ORGANICS LIMITED, CIN- U24110TG1997PLC028281 has submitted a suo moto compounding application dated 17.03.2025 in respect of non-compliance of Section 178(1) of the Companies Act, 2013 read with Rule 6 of the Companies (Meeting of Board and its Powers) Rules, 2014 and Rule 4 of the Companies (Appointment and Qualification of Directors) Rules, 2014 punishable under Section 178(8) of the Companies Act, 2013 for the default in the constitution of Nomination and Remuneration Committee of the Board during the period from 01.04.2014 to 10.05.2023. E-Show Cause Notice dated 21.08.2025 was issued to the company and every officer of the company who is in default. The company and all officers in default have submitted replies to the Show Cause Notice and opted for ?no hearing? except Sri. Singamsetty Prathap Kumar who has even though sought extension of time up to 04.09.2025 for submission of reply to Show Cause Notice neither replied nor opted for E-Adjudication hearing within the stipulated time. The adjudicating authority based on the adjudication application and the information available in MCA Portal in respect of the company and after considering the submission from the company and its officers in default, do hereby impose the penalty as per the provisions of section 178(8) 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 | VIRUPAKSHA ORGANICS LIMITED having CIN as U24110TG1997P LC028281 | 500000 | 0 | 500000 | |
| 2 | CHANDRA MOULISWAR REDDY GANGAVARAM having DIN as 00046845 | 100000 | 0 | 100000 | |
| 3 | BALASUBBA REDDY MAMILLA having DIN as 01998852 | 100000 | 0 | 100000 | |
| 4 | CHANDRASEKH AR REDDY GANGAVARAM having DIN as 03534167 | 100000 | 0 | 100000 | |
| 5 | SINGAMSETTY PRATHAP KUMAR having PAN as AVKPS0933P | 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 Hyderabad 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.
Parvinder Singh,
Registrar of Companies
ROC Hyderabad
