ROC Imposes Penalty as Annual Return in Form MGT-7 Was Not Filed

The Registrar of Companies, Uttar Pradesh imposed penalties under Section 92(5) of the Companies Act, 2013 against a Nidhi company and its directors for failure to file the annual return in Form MGT-7 for FY 2019-20. During an inquiry conducted under Section 206(4), the Inquiring Officer observed that the company had not filed its annual return as mandated under Section 92(4). Although the company had filed annual returns for other financial years, it failed to file the return for FY 2019-20 and also did not respond to show cause notices or avail hearing opportunities granted by the ROC. Consequently, the adjudicating authority treated the lapse as continuing non-compliance and imposed a penalty of ₹1,76,200 on the company and ₹50,000 each on three directors. The order directed rectification of the default within ninety days and reiterated that officers in default must pay penalties from personal sources under the Companies Act framework.

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
ROC Uttar Pradesh I
2nd Floor, Kendriya Bhawan, GPOA Building, Fazalganj, Kanpur, Uttar Pradesh, India, 208012
Phone: 0512-2310443
E-mail: roc.kanpur@mca.gov.in

Order ID: PO/ADJ/05-2026/UP/02253 Dated: 21/05/2026

ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 92(5) 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 LOKVIKAS BENEFIT NIDHI LIMITED [herein after known as Company] bearing CIN U67190UP2017PLC093239, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at GURAWALIA KUSHINAGAR NA GORAKHPUR GORAKHPUR UTTAR PRADESH INDIA 274302

Individual details:

In the matter relating to AMBIKA SHARMA ——–

In the matter relating to DILIP SHARMA——–

In the matter relating to PUJA SHARMA ——

C. Provisions of the Act:

If any company fails to file its annual return under sub-section (4), before the expiry of the period specified therein, such company and its every officer who is in default shall be liable to a penalty of ten thousand rupees and in case of continuing failure, with further penalty of one hundred rupees for each day during which such failure 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.

D. Facts about the case:

1. Default committed by the officers in default/noticee – SCA MCA vide letter dated 10.04.2020 directed to conduct the Inquiry u/s. 206(4) of the Companies Act, 2013. During the Couse of Inquiry, Inquiring Officer has observed/pointed out that ?The company has not filed its Annual returns in Form MGT-7 for the financial year ending 31.03.2020. Hence, it is non­compliance of Section 92(4) of the Companies Act, 2013. Penal action to be initiated against the Company and its officers in default for violation of Section 92(4) of the Companies Act, 2013 which is punishable under Section 92(5) of the Companies Act, 2013 ?. The said violation was reported by the Inquiring Officer in his report dated 29.04.2022. Accordingly, the office of DGCoA vide its File No. CL-II-04/110/2023-O/o DGCoA-MCA dated 02.11.2023 and RDNR vide letter No. Inquiry/206(4)/LokVikas/ RD(NR)/2022/3314 dated 10.06.2022 directed this office to take necessary action for non­compliance of section 92(4) of the Companies Act, 2013 for the financial year 31.03.2020

2. Since the company has filed the Annual return for all the year except for the year ending 31.03.2020 and in view of the CCFS scheme

E. Order:

1. During the Couse of Inquiry, IO has observed/pointed out that the company has not filed its Annual returns in Form MGT-7 for the financial year ending 31.03.2020 which is non-compliance of Section 92(4) of the Companies Act, 2013 punishable under Section 92(5) of the Companies Act, 2013.

In this regard this office issued Show Cause Notice to the company and its officer-in-default for not filing the Annual Return for the year ending as at 31.03.2020. Subsequently hearing was granted to the Company on 13.05.2026 and 21.05.2026, however the company and its officer-in default did not respond neither filed the document. In the said circumstances, penalty as mentioned below is being imposed upon the company as well as its officer-in default as per Section 92 (5) Companies Act, 2013.

2. The details of penalty imposed on the company, officers in default and others are shown in the table below:

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 Delhi 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 Uttar Pradesh I