The Registrar of Companies, Kanpur, exercising adjudication powers under Section 454 of the Companies Act, 2013, imposed penalties for non-compliance with statutory disclosure requirements in the Directors’ Report. The order records that the company and its officers failed to explain auditor-reported non-compliances with multiple provisions of the Nidhi Rules, 2014 in the Directors’ Report for FY 2016–17, amounting to a breach of Section 134(3)(f). Despite issuance of a show-cause notice, neither the company nor the officers responded or sought a hearing. Based on the inquiry findings and concurrence of the competent authority, penalties were levied under Section 134(8): ₹3 lakh on the company and ₹50,000 each on three directors. The order directs rectification of the default and payment within 90 days through the MCA e-Adjudication portal, with personal payment mandated for officers. An appeal lies to the Regional Director within 60 days.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Kanpur
Registrar of Companies, 37/17, Westcottt Buidling, The Mall, Kanpur, Uttar Pradesh, India, 208001
Phone: 0512-2310443,2310227,2310323
E-mail: roc.kanpur@mca.gov.in
Order ID: PO/ADJ/01-2026/KN/01360 | Dated: 16/01/2026
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 134(8) OF THE COMPANIES ACT, 2013.
A. Appointment of Adjudicating Officer:
Ministry of Corporate Affairs vide its Gazette notification no. S.O. 831(E) dated 24.3.2015 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 MOUNTSOFT MUTUAL BENEFIT INDIA NIDHI LIMITED [herein after known as Company] bearing CIN U65991UP2015PLC068928, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at H.NO-5, DWARIKAPURI,KANKALI ROAD MOHANBAGH NA MATHURA MATHURA UTTAR PRADESH INDIA 281001
Individual details:
In the matter relating to SARVESH KUMAR _____________
In the matter relating to PANKAJ KUMAR _____________
In the matter relating to REENA YADAV [herein after known as individual] having DIN 08035798 and having its address at 5, MOHAN BAG H COLONY, BHUTESWAR ROADOPP. MATHURA BANGAR MATHURA UTTAR PRADESH INDIA 281004
C. Provisions of the Act:
(8) If a company is in default in complying with the provisions of this section, the company shall be liable to a penalty of three lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees
D. Facts about the case:
1. Default committed by the officers in default/noticee – Whereas one of the meetings where Regional Directors were directed to conduct an in-depth examination and submit a report on the surge of Nidhi Companies in Kanpur, Jaipur and Patna by the Secretary of Corporate Affairs vide minutes dated 10.04.2020. This being one of the Nidhi Company identified by ROC, Kanpur on suo-moto basis consequent upon the discussions in the ROC Review workshops with reference to Nidhi Companies. The Inquiry Officer (IO) has observed that the Auditor in his report attached with Balance sheet of the company for financial year ending 31.03.2017 reported the non-compliance of Rule 10(4) , Rule 14, Rule 5(d), Rule 11 and Rule 21 of Nidhi Rules 2014. The said non-compliances were not explained by the directors in their (Director?s) Report for the financial year ending 31.03.2017. Hence there is violation of section 134(3)(f) of the Companies Act, 2013. Accordingly, the Inquiry officer has reported the said violation in the Inquiry Report dated 19.09.2022. The O/o DGCoA vide letter dated 29.02.2024 has accorded with the penal action for said non-compliance. Thus, it is evident that the company and its Directors have failed to comply with the provisions of section 134(3)(f) of the Companies Act, 2013, in disclosing the non-compliances reported by the auditor in the auditor report for the financial year ending 31.03.2017 in the Director?s Report, thereby attracting the penal provisions mentioned under Section 134(8) of the Act. The Company and its Directors are officers in default, as per section 2(60), of the Companies Act, 2013. And are thus liable for penal provisions.
2. Neither any response has been received from the company and its officers-in-default nor any request of hearing received in this regard
E. Order:
1. This office issued Show Cause Notice on 04.06.2025 to the company and every officer of the Company who is in default for failure to provide the explanation in the (Director?s) Report for the financial year ending 31.03.2017 in respect of the qualification/reservation of the Auditor in his report attached with Balance sheet of the company for financial year ending 31.03.2017 wherein auditor reported the non-compliance of Rule 10(4) , Rule 14, Rule 5(d), Rule 11 and Rule 21 of Nidhi Rules 2014 by the Company. Hence there is violation of section 134(3)(f) of the Companies Act, 2013.
More than 30 days have expired from issue of Show Cause Notice, no response has been received till date. The company and every officer of the Company who are in default have also not requested for hearing. In the said circumstances, penalty as applicable as mentioned below is being imposed upon the company and every officer of the Company who is in default as per Section 134 (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 | MOUNTSOFT MUTUAL BENEFIT INDIA NIDHI LIMITED having CIN as U65991UP2015P LC068928 | 300000 | 0 | 300000 | |
| 2 | SARVESH KUMAR having DIN as 06944104 | 50000 | 0 | 50000 | |
| 3 | PANKAJ KUMAR having DIN as 07092008 | 50000 | 0 | 50000 | |
| 4 | REENA YADAV having DIN as 08035798 | 50000 | 0 | 50000 |
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 Noida 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.
Sanjay Bose,
Registrar of Companies
ROC Kanpur
