The Registrar of Companies, Chennai, passed an adjudication order under Section 454 of the Companies Act, 2013, imposing penalties for violation of Rule 14(6) of the Companies (Prospectus and Allotment of Securities) Rules, 2014. The company failed to furnish complete details of allottees, including Permanent Account Number, email ID, and full address, in Form PAS-3 filed for return of allotment. The company contended that such details were not mandatory where allottees lacked PAN or email ID, but the authority rejected this interpretation and held that the rule requires complete disclosure. After considering submissions and conducting a hearing, the authority concluded that the omission constituted a statutory default attracting penalty under Section 450. Accordingly, penalties of ₹10,000 each were imposed on the company and its defaulting officers, with directions to rectify the default within 90 days, pay penalties through the MCA portal, and avail appellate remedy within 60 days.
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/04-2026/CN/02073 Dated: 30/04/2026
ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 450 OF THE COMPANIES ACT, 2013.
A. Appointment of Adjudicating Officer:
Ministry of Corporate Affairs vide its Gazette notification number S.O. 698(E) dated 10/02/2026 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 MARTHANDAM PEOPLE DEVELOPMENT NIDHI LIMITED [herein after known as Company] bearing CIN U65990TN2011PLC082557, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at NO.6-11/7, ‘MALANKARA BUILDING’ MARTHANDAM MAIN ROAD, NA MARTHANDAM POST TAMIL NADU INDIA 629165
Individual details:
In the matter relating to DHARMAIYAN SIBI . ——
In the matter relating to BALAKRISHNAN SOBHIDANANDAN .——–
C. Provisions of the Act:
If a company or any officer of a company or any other person contravenes any of the provisions of this Act or the rules made thereunder, or any condition, limitation or restriction subject to which any approval, sanction, consent, confirmation, recognition, direction or exemption in relation to any matter has been accorded, given or granted, and for which no penalty or punishment is provided elsewhere in this Act, the company and every officer of the company who is in default or such other person shall be 1[liable to a 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]
D. Facts about the case:
1. Default committed by the officers in default/noticee – The Ministry vide letter dated 09.07.2024 has rejected the form NDH-4 (Form for filing application for declaration as Nidhi and for updation of Status by Nidhi) filed by the company M/s. Marthandam People Development Nidhi Limited (vide SRN: R54231139 dt. 08.09.2020). Wherein, it was stated that the company has not mentioned the complete details in the list of allotees as required in Rule 14(6) of the Companies (Prospectus and Allotment of Securities) Rules, 2014 which read as follows:
14 (6) A return of allotment of securities under section 42 shall be filed with the Registrar within fifteen days of allotment in Form PAS-3 and with the fee as provided in the Companies (Registration offices and Fees) Rules, 2014 along with a complete list of all the allottees containing-
- the full name, address, permanent Account Number and E-mail ID of such security holder;
- the class of security held;
- the date of allotment of security ;
- the number of securities herd, nominal value and amount paid on such securities; and particulars of consideration received if tire securities were issued for consideration other than cash.
On perusal of the said rejection letter and relevant forms, it is noticed that the subject Company has not mentioned Permanent Account Number, e-mail ID and complete address of the allottees in the list of allottees attached with Form PAS-3 filed vide SRN H85576825 dated 28.08.2019 in MCA system, resulting in violation of Rule 14(6) of Companies (Prospectus and Allotment of Securities) Rules, 2014. Hence, the company and its director is liable under Section 450 of the Companies Act, 2013
2. The Adjudicating Authority had issued notice for e-Adjudication for default under Section 450 of the Companies Act, 2013 vide SCN/ADJ/02-2026/CN/03815 on 03.03.2026. The Company vide letter dated 17.03.2026, submitted that there is no requirement for persons to become members of Nidhi to have a PAN or Email ID and that non-filing of PAN and Email ID for those allottees who did not have PAN/Email ID is not a violation as per Rule 14(6) of Companies (Prospectus and Allotment of Securities) Rules, 2014.
Further, the Adjudicating Authority had issued notice for e-hearing on 23.03.2026, for e-hearing scheduled on 25.03.2026. CA. A.Amirtha Rajan, the Authorized representative attended the e-hearing scheduled on 25.03.2026 and made submissions that the violation may be adjudicated by imposing lesser penalty.
E. Order:
1. As per Rule 14(6) of Companies (Prospectus and Allotment of Securities) Rules, 2014, the Company must mention the full name, address, Permanent Account Number and E-mail ID of the Allottees in the list of Allottees attached along with Form PAS-3. However, the Company has not mentioned the address, Permanent Account Number and E-mail ID of any of the allottees in the list of Allottees attached along with Form PAS-3 filed vide SRN H85576825 dated 28.08.2019. In this regard, the Company has violated Rule 14(6) of Companies (Prospectus and Allotment of Securities) Rules, 2014 and therefore, the Company and the officers in default are liable for penalty under Section 450 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 | MARTHANDAM PEOPLE DEVELOPMENT NIDHI LIMITED having CIN as U65990TN2011P LC082557 | 10000 | 0 | 200000 | |
| 2 | DHARMAIYAN SIBI . having DIN as 08286160 | 10000 | 0 | 50000 | |
| 3 | BALAKRISHNAN SOBHIDANANDA N . having DIN as 03574601 | 10000 | 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 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
