The Registrar of Companies, Kanpur, under the Ministry of Corporate Affairs, passed an adjudication order dated 6 February 2026 imposing penalties under Section 454 of the Companies Act, 2013 for violation of Section 134(8). The proceedings arose from an inquiry under Section 206(4), where the auditor reported that the company failed to maintain unencumbered term deposits as mandated under the Nidhi Rules, 2014 for FY 2015–16 (and earlier noted for FY 2016–17). Crucially, the directors did not explain this adverse audit remark in the Directors’ Report, constituting non-compliance with Section 134(3). Despite issuance of a show-cause notice, neither the company nor its officers responded or sought a hearing. Holding that the statutory requirement to explain audit qualifications was breached and that penalties under Section 134 are fixed, the Adjudicating Officer imposed ₹3,00,000 on the company and ₹50,000 each on three directors, payable within 90 days, with a right to appeal.
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/01590 Dated: 06/02/2026
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, 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 PRANAM INDIA NIDHI LIMITED [herein after known as Company] bearing CIN U65991UP2014PLC067506, is a company registered with this office under the Provisions of the Companies Act, 2013/1956 having its registered office situated at SONBARSA BAZAR P.O.SONBARSA NA GORAKHPUR GORAKHPUR UTTAR PRADESH INDIA 273002
Individual details:
In the matter relating to AWADHESH KUMAR JAISWAL ———
In the matter relating to SUNIL KUMAR GUPTA ——–
In the matter relating to SUNIL KUMAR JAISWAL ——-
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 – The SCA of MCA vide its minutes 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 Auditor in his report attached with the Balance Sheet of the company for the financial year ending 31.03.2016 and 31.03.2017 reported that the company has not maintained unencumbered term deposits i.e. a minimum of ten percent of the outstanding deposits as specified in Rule 5(1) (c) read with Rule 14 of the Nidhi Rules, 2014. The above points have not been explained by the directors in their (Directors’) Report for the financial year ending 31.03.2016 and 31.03.2017. Hence, it is non-compliance of Section 134(3) of the Companies Act, 2013. The penal action contemplated under Section 134(8) of the Companies Act, 2013 to be initiated against the Company and its officers in default for non-compliance of Section 134(3) of the Companies Act, 2013.? The said violation was reported by the Inquiring Officer in his report dated 09.09.2022. Accordingly, the office of DGCoA vide its File No. CL-II-04/15/2024-O/o DGCoA-MCA dated 02.09.2024 and RDNR vide its No. Inquiry/206(4)/Pranam/RD (NR) /2022/1263 dated 18.05.2023 directed this office to take necessary action for non-compliance of section 134 of the Companies Act, 2013 for the financial year 31.03.2016.
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. Auditor in his report attached with the Balance Sheet of the company for the financial year ending 31.03.2016 reported that the company has not maintained unencumbered term deposits i.e. a minimum of ten percent of the outstanding deposits as specified in Rule 5(1) (c) read with Rule 14 of the Nidhi Rules, 2014. The said qualification/adverse remark/reservation has not been explained by the directors in the Directors’ Report for the financial year ending 31.03.2016 which is in violation of Section 134(3) of the Companies Act, 2013.
This office issued Show Cause Notice on 09.01.2026 to the company and its officer-in-default for violation of Section 134(3) of the Companies Act, 2013. More than 15 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 upon the company as well as its officer-in default as per 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 | PRANAM INDIA NIDHI LIMITED having CIN as U65991UP2014P LC067506 | 300000 | 0 | 300000 | |
| 2 | AWADHESH KUMAR JAISWAL having DIN as 00447341 | 50000 | 0 | 50000 | |
| 3 | SUNIL KUMAR GUPTA having DIN as 01936421 | 50000 | 0 | 50000 | |
| 4 | SUNIL KUMAR JAISWAL having DIN as 06755485 | 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
