The Registrar of Companies, Chennai, passed an adjudication order under Section 454 of the Companies Act, 2013, imposing penalties for violation of Section 134(5) read with Section 134(8) of the Act. Following an inquiry under Section 206(4), it was found that in the Directors’ Reports for FY 2016–17 and 2017–18, the company claimed compliance with applicable Accounting Standards but had in fact not complied with Accounting Standards 2, 15, 18, and 26, nor provided any reminder or explanation for such departures. This omission rendered the Directors’ Responsibility Statement non-compliant with statutory requirements. The explanations offered by the company citing inadvertence and lack of clarity were not accepted. Consequently, a penalty of ₹3 lakh was imposed on the company, and ₹50,000 each on three directors, with no additional per-day penalty. The order directed rectification of defaults and payment of penalties within 90 days, while granting a statutory right of appeal to the Regional Director 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/12-2025/CN/01072 | Dated: 15/12/2025
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 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, 2013Companies 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 IND ECO VENTURES LIMITED [herein after known as Company] bearing CIN U24231TN1982PLC009345, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at KOTHARI BUILDING, 4TH FLOOR 114, M G ROAD, NUNGAMBAKKAM KOTHARI BUILDING, 4TH FLOOR 114, M G ROAD, NUNGAMBAKKAM NA CHIENNAI TAMIL NADU INDIA 600034
Individual details:
In the matter relating to BALA VENCKAT KUTTI —-
In the matter relating to —-
In the matter relating to NIRANJAN RAOSAHEB JAGTAP—–
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 – An inquiry was conducted under Section 206(4) of the Companies Act 2013 in the matter of Ind Eco Ventures Limited (CIN: U24231TN1982PLC009345) by an Officer authorized by the Central Government wherein the observations of the Inquiry Officer are as follows:
“As per Section 134(5) of the Companies Act, 2013, the Director’s Responsibility Statement referred to in clause (c) of subsection (3) shall state that ? (a) in the preparation of the Annual accounts, the applicable Accounting Standards had been followed along with proper explanation relating to material departures. In the board of director’s report attached to Financial Statement as at 31.03.2017 and 31.03.2018, Board of Directors have stated? in accordance with the provisions of Section 134(5) of the Act, the applicable Accounting standards had been followed along with proper explanation relating to material departures. While the company has not complied with Accounting Standard 2,15,18 and 26. No explanation has been furnished in respect of departure in following the Accounting Standard. Hence, the requirements of Section 134(5) of the Act has not been complied with. Therefore, the Company and its directors are liable under Section 134(8) of the Companies Act, 2013”.
Accordingly, on submission of the Inquiry Report by the Officer, the Ministry/ Regional Director, Ministry of Corporate Affairs, Chennai has directed this office to initiate necessary action against the defaulters of the provisions of the Companies Act, 2013.
2. The Adjudicating Authority had issued notice for e-Adjudication on 20.02.2025. The company vide letter dated 25.03.2025 submitted that any non-compliance is due to inadvertence and oversight, not due to any mala fide intention or willful default. Further the Adjudicating Authority had issued notice for e-hearing on 02.04.2025 for the hearing scheduled on 09.04.2025. Mr.R.Kannan, Practicing Company Secretary (Membership No. FCS6718) attended the e-hearing fixed on 09.04.2025 Further, the Company vide letter dated 11.04.2025 submitted that they have complied with the Accounting Standards and further submitted that they were unable to ascertain the exact non-compliance envisaged/ascertained by the Adjudication Officer from the SCN. Further the Adjudicating Authority had issued a notice for rescheduling of e-hearing on 11.04.2025 for the hearing scheduled on 15.04.2025. Mr.R.Kannan, Practicing Company Secretary (Membership No. FCS6718) attended the e-hearing fixed on 15.04.2025 and made submissions that the violation may be adjudicated and reduce the penalty amount stated in the e-Adjudication notice.
E. Order:
1. It is noticed that upon conducting inquiry under Section 206(4) of the Companies Act, 2013, in the Board of Director’s Report attached to the Financial Statement as at 31.03.2017 and 31.03.2018, the Board of Directors have stated “in accordance with the provisions of section 134(5) of the Companies Act, 2013 the applicable accounting standards had been followed along with proper explanation relating to material departures”. While the Company has not complied with Accounting Standard 2, 15, 18 and 26 and no explanation has been furnished in respect of default in following the accounting standard. Therefore, the Company has violated section 134(5) of the Companies Act, 2013 and the Company and its Directors are liable under 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 | IND ECO VENTURES LIMITED having CIN as U24231TN1982P LC009345 | 300000 | 0 | 300000 | |
| 2 | BALA VENCKAT KUTTI having DIN as 00765036 | 50000 | 0 | 50000 | |
| 3 | GNANAPRABHA KARAN KUTTUVA KRISHNAIYER having DIN as 00918669 | 50000 | 0 | 50000 | |
| 4 | NIRANJAN RAOSAHEB JAGTAP having DIN as 01237606 | 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 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
