The Registrar of Companies, Kanpur passed an adjudication order under section 454 of the Companies Act, 2013 imposing penalties for violation of section 450 due to non-compliance with Rule 12A of the Companies (Appointment and Qualification of Directors) Rules, 2014. An inquiry conducted under section 206 revealed that the DINs of all directors were deactivated because DIR-3 KYC had not been filed. The lapse constituted a contravention for which no specific penalty is prescribed elsewhere, attracting the residual penalty provision under section 450. Show cause notices were issued to the company and its directors; however, no replies were received and no hearing was sought. Proceeding ex parte, the Adjudicating Officer held the company and all directors liable for continued non-compliance. Penalties were imposed at the statutory maximum on the company and individually on each director. The order underscores that failure to complete annual DIR-3 KYC resulting in DIN deactivation is a serious compliance breach attracting penalties under section 450 when left unrectified.
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/02-2026/KN/01547 | Dated: 02/02/2026
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. 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 PILLARS MUTUAL NIDHI LIMITED [herein after known as Company] bearing CIN U65991UP2014PLC064416, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at A-25 RAS BAHAR COLONY JHANSI NA JHANSI JHANSI UTTAR PRADESH INDIA 284003
Individual details:
In the matter relating to DEVI LAL KUSHWAHA _____________________________
In the matter relating to DEEPCHAND KUSHWAHA _____________________________
In the matter relating to RAJENDRA KUMAR _____________________________
In the matter relating to BHUPENDRA KUSHWAHA _____________________________
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 SCA vide minutes dated 10.04.2020 of MCA directed to conduct the inquiry u/s. 206(5) of the Companies Act, 2013. During the Couse of Inquiry, Inquiring Officer has observed/pointed out that ?It has been observed from the MCA21 Registry that KYC status of all the directors has been deactivated due to non-filing of DIR-3 KYC. Hence, it is violation of Rule 12A of Companies (Appointment and Qualification of Directors) Rules, 2014. The penal action as contemplated under Section 450 of the Companies Act, 2013 to be initiated against the Company and its officers in default for non-compliance 12A of Companies (Appointment and Qualification of Directors) Rules, 2014?. The said violation was reported by the Inquiring Officer in his report dated 26.09.2022. Accordingly, the office of DGCoA vide its File No. CL-II-04/18/2024-O/o DGCoA-MCA dated 02.09.2024 and RDNR vide its letter No. Inquiry/206(4)/Pillars/RD (NR) /2022/4142 dated 16.08.2023 directed this office to take necessary action for non-compliance of section 12 A of Companies (Appointment and Qualification of Directors) Rules, 2014.
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. During the Couse of Inquiry, Inquiring Officer has observed/pointed out that DIN status of all the directors shows deactivated, due to non-filing of DIR-3 KYC form in violation of Rule 12A of Companies (Appointment and Qualification of Directors) Rules, 2014. The penal action as contemplated under Section 450 of the Companies Act, 2013 to be initiated against the Company and its officers in default for non-compliance 12A of Companies (Appointment and Qualification of Directors) Rules, 2014
This office issued Show Cause Notice on 04.06.2025 to Company and all its directors due to non-filing of DIR-3 KYC which is non-compliance of Rule 12A of Companies (Appointment and Qualification of Directors) Rules, 2014.
More than 30 days have expired from issue of Show Cause Notice, no response has been received till date. The company and its officer-in default have also not requested for hearing. In the said circumstances, penalty as applicable as mentioned below is being imposed as per 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 | PILLARS MUTUAL NIDHI LIMITED having CIN as U65991UP2014P LC064416 | 200000 | 0 | 200000 | |
| 2 | DEVI LAL KUSHWAHA having DIN as 06497782 |
50000 | 0 | 50000 | |
| 3 | DEEPCHAND KUSHWAHA having DIN as 06498394 |
50000 | 0 | 50000 | |
| 4 | RAJENDRA KUMAR having DIN as 08358878 | 50000 | 0 | 50000 | |
| 5 | BHUPENDRA KUSHWAHA having DIN as 06498375 |
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
