The Registrar of Companies, West Bengal, issued an adjudication order imposing a penalty on Sanjay Basu for violating Section 155 of the Companies Act, 2013, which prohibits possessing more than one Director Identification Number (DIN). Mr. Basu, holding DIN 01225331 since 2007, inadvertently obtained a second DIN (10029344) in November 2022 during the initial implementation challenges of the MCAV3 e-portal, a process then managed by his Chartered Accountant. Upon discovering this duplication during a DIR-3 KYC filing, Mr. Basu filed Form DIR-5 in January 2024 to surrender the newer DIN, intending to retain the older one associated with two struck-off companies. He stated this error was unintentional, arising from a misunderstanding about his existing DIN.
Despite Mr. Basu’s claim of inadvertence and the non-utilization of the second DIN, the Adjudicating Officer found him in default of Section 155, leading to penalties under Section 159. A hearing was conducted where Mr. Basu’s representative acknowledged the contravention but requested leniency. The order imposed a total penalty of ₹2,64,500, calculated as a base penalty of ₹50,000 plus ₹500 for each of the 429 days of default (from obtaining the second DIN until filing for its surrender). Mr. Basu is directed to pay this penalty within 90 days via online payment on the MCA website. The order also outlines the process for filing an appeal with the Regional Director (ER) within 60 days and the consequences of non-payment within the stipulated timeframe.
Government of India
Ministry of Corporate Affairs
Office of the’ Registrar of Companies, West Bengal
“Nizam Palace”,
2nd M. S. 0. Building, 2nd Floor
234/4, Acharya J. C. Bose Road
Kolkata — 700 020
Order No. RoC/ADJ/586/2024 Date: 22.04.2025
Adjudication Order for Penalty under Section 454(3) of the Companies Act, 2013, read with Rule 3 of the Companies (Adjudication of Penalties) Rules, 2014, as amended by the Companies (Adjudication of Penalties) Rules, 2019, in the matter of non-compliance with the provisions of Section 155 of the Companies Act, 2013, regarding duplicate Director Identification Number (DIN).
In respect of: SANJAY BASU (DIN: 01225331)
1.Appointment of Adjudicating Officer: –
Ministry of Corporate Affairs vide its Gazette Notification No A-42011/112/2014-Ad.II dated 24.03.2015 appointed undersigned as Adjudicating Officer in exercise of the powers conferred by Section 454(1) read with Section 454(3) of the Companies Act, 2013 [herein after known as Act] read with the Companies (Adjudication of Penalties) Rules, 2014 for adjudicating penalties under the provisions of this Act. The undersigned vide the Companies (Amendment) Ordinance, 2019 is entrusted to adjudicate penalties under Section 155 of the Companies Act, 2013 with effect from 02.11.2018.
2. Applicant Director: –
SANJAY BASU (hereinafter referred to as “the ‘Director”) is having DIN: 01225331 (DIN approval Date: 24.01.2007) and residing at Bougen Villae, 11B, Burdwan Road, Alipore, Kolkata, West Bengal- 700027 India which is under the jurisdiction of the Registrar of Companies (West Bengal).
3. Facts about the Case: –
1) The Applicant Director has made a Suo-moto application and stated the following facts:
I. CONTRAVENTION OF SECTION 155 OF THE COMPANIES ACT, 2013
i The genesis of this application arises from the Revelation made during the Filing of his form DIR-3 – KYC wherein he discovered the existence of two distinct Director Identification numbers (DINs) associated with his name. Especially, DIN: 10029344, and DIN: 01225331.
ii. It is crucial to provide context regarding the management of his DIN and RoC/ MCA e-filing matters. These were initially handled by a Practicing Chartered Accountant, who, amidst the chaos during the early stages of implementing the MCAV3 e-Portal, inadvertently applied for and obtained the duplicate DIN on his behalf. This chaotic period was characterized by numerous technical errors and glitches, causing hardships for professionals and stakeholders nationwide to e-file RoC/ MCA forms and comply with the provisions of the Companies Act, 2013.
iii. Importantly, He have been allotted two Director Identification Numbers (DIN) erroneously i.e. DIN: 01225331 and DIN: 10029344 respectively, his oldest DIN 01225331 is now associated with 2 companies EDENCITY INFRABUILD PRIVATE LIMITED (CIN: U45208WB2008PTC129898) and EDENCITY DEVELOPERS PRIVATE LIMITED (CIN: U45208WB2008PTC129893) and both companies are having status as ‘Strike Off as per MCA Portal.
iv Nevertheless, upon realizing this discrepancy, he expeditiously filed Form. No.DIR-5 on 24/01/2024, seeking the surrender of the newer DIN: 10029344, vide SRN: AA6688089, with the intention to retain the older DIN: 01225331. It is to be highlighted that he was able to do so also only after facing numerous hurdles and errors due to MCAv3 Portal’s technical glitches and shortcomings. It is pertinent to note that subsequent to this filing, he received directives from the governing authority to resubmit the Form No.DIR-5, with instructions to adjudicate the case before proceeding further. This directive led him to become cognizant of the adjudication procedure prescribed by the regulatory framework.
v. He candidly acknowledges that his actions have contravened Section 155 of the Companies Act, 2013, which explicitly prohibits individuals from possessing multiple DINs. However, he asserts that this contravention was not borne out of deliberate intent, but rather stemmed from a genuine misunderstanding regarding the existence of the older DIN: 01225331 at the time of applying for the newer DIN: 10029344. It was an inadvertent error resulting from ignorance and the misimpression of not having an existing DIN.
4. As per the provisions of Section 155 of the Companies Act, 2013, Prohibition to Obtain More than One Director Identification Number:
No individual who has already been allotted a Director Identification Number under section 154 shall apply for, obtain or possess another Director Identification Number.
Thus, the captioned directors is in default and is liable for penal action under Section 159 of the Companies Act, 2013 for violation of Section 155 of the said Act.
However, the director in its instant application has stated that the contravention is inadvertent in nature and ought to he condoned.
5. According to the provisions of Section 159 of the Companies Act, If any individual or director of a company makes any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which may extend to five hundred rupees for each day after the first during which such default continues.
6. Accordingly, the adjudication officer has issued Hearing notice vide No. ROC/ADJ/586/2024/4349 dated: 28.08.2024 scheduling a Hearing on 10.09.2024 under Section 4.54 read with Rule 3(2) of Companies (Adjudication of Penalties) Rules, 2014 as amended up to date, for contravention of section 155 of the Companies Act, 2013, to the Applkant Director in default, giving an opportunity to appear himself or authorized representative before undersigned as to why the penalty should not be imposed under the provisions of Section 159 of the Act against the Applicant Director in default for the above stated violations.
7. Further, Mr. Sushil Agarwal, Charted Accountant, appeared on 10.09.2024 for the hearing on behalf of the Applicant director Mr. Sanjay Basu and submitted that one DIN: 01225331 allotted to Shri Sanjay Basu on 24.01.2007. Further another second DIN: 10029344 in favor of Mr. Sanjay Basu was allotted on 21.11.2022 erroneously. For which the concern director filed e-form DIR-5 vide SRN: AA6688089 on 24.01.2024 to surrender the later DIN: 10029344. In compliance with the above, this instant application has been preferred for. Therefore, there is a delay of approximately 1 year 2 months and 3 days. However, it is humbly submitted that the second DIN was never utilized for any purpose and does not amount to any deliberate contravention of the Act. Keeping in view of the above, the adjudication process may be taken leniently, and proceedings may be dropped. Accordingly, the matter was heard, and the order is passed as under:
ORDER
1. The applicant who has defaulted in the provisions of section 155 of the Companies Act, 2013 for obtaining second DIN: 10029344 (Date of Approval- 21.11.2022) is liable for penalties under section 159 of the Companies Act, 2013.
2. In exercise of the powers conferred vide Companies (Amendment) Ordinance, 2019, the undersigned is entrusted to adjudicate penalties under section 159 of the Companies Act, 2013. I do hereby impose the penalty of Total Rs. 2,64,500/- (Rupees Two Lakh Sixty-Four Thousand and Five Hundred only) on the Applicant Director pursuant to Rule 3(12) of Companies (Adjudication of Penalties) Rules, 2014 and the proviso of the said Rule and Rule 3(13) of Companies (Adjudication of Penalties) Rules, 2014 r/w General Circular No. 1/2020 dated 02.03.2020: as per table below for violation of section 155 r/w 159 of the Act:
| SL No. |
Name of the
Applicant Director who is in default |
Nature of Violation | Amount calculated
Ws 159 (In Rs.)imposed |
Penalty (In Rs.) |
| 1 | Sanjay Basu
(Director) [DIN: 01225331] |
Violation of Section 155 of the Companies Act, 2013 | 50,000 +
500 * 429 days = 2,64,500 |
2,64,500 |
| Total Penalty Payable | 2,64,500 | |||
[Total 429 Days of default (from 21.11.2022 i.e., Date of obtaining Second DIN to 24.01.2024 i.e., Date of filing of DIR-5 to surrender the Duplicate DIN)]
3. The concerned noticee shall pay the said amount of penalty individually (out of own pocket) by way of e-payment [available on Ministry website mca.gov.in] under “Pay miscellaneous fees” category in MCA fee and payment Services within 90 days of receipt of this order. The Challan/SRN generated after payment of penalty through online mode shall be forwarded to this Office Address.
4. Appeal against this order may be filed in writing with the Regional Director (ER), Ministry of Corporate Affairs, Kolkata located at Nizam Palace, 2nd M. S. 0. Building, 3rd Floor, 234/4, A.J.C. Bose Road, Kolkata-700020, West Bengal within a period of sixty days from the date of receipt of this order, in Form ADJ [available on Ministry website mca.gov.in] setting forth the grounds of appeal and shall be accompanied by a certified copy of the this order. [Section 454(5) & 454(6) of the Act read with Companies (Adjudicating of Penalties) Rules, 2014].
5. Your attention is also invited to Section 454(8)(i) and (ii) of the Act regarding consequences of non-payment of penalty within the prescribed time limit of 90 days from the date of the receipt of copy of this order.
6. In terms of the provisions of sub-rule (9) of Rule 3 of Companies (Adjudication of Penalties) Rules, 2014 as amended by Companies (Adjudication of Penalties) Amendment Rules, 2019, copy of this order is being sent to Applicant Sanjay Basu who is in default mentioned herein above and also to Office of the Regional Director (Eastern Region) and Ministry of Corporate Affairs at New Delhi.
Date: 22.a April 2025
[A. K. Sethi, ICLS]
Adjudicating Officer & Registrar of Companies,
West Bengal
Copy for information and record to: –
1. The Regional Director (ER), Ministry of Corporate Affairs, 234/4, A.J.0 Bose Road, 211d S.O. Building, 3rd Floor, Kolkata-700020.
2. Director, Legal, Ministry of Corporate Affairs, Shastri Bhawan New Delhi in compliance to Rule 3(9) of Companies (Adjudication of Penalties) Rules, 2014.
3. E-mail to content Manager for publication on Ministry’s website.
4. Spare Office copy.
