NOW ROC OR REGIONAL DIRECTOR IS EMPOWERED TO IMPOSE PENALTY UNDER COMPANIES ACT 2013 FOR NON-COMPLIANCES OF THE FOLLOWING PROVISIONS UNDER THE COMPANIES (AMENDMENT) ORDINANCE, 2018

NOW ROC OR REGIONAL DIRECTOR IS EMPOWERED TO IMPOSE PENALTY UNDER COMPANIES ACT 2013 FOR NON-COMPLIANCES OF THE FOLLOWING PROVISIONS UNDER THE COMPANIES (AMENDMENT) ORDINANCE, 2018

The Companies (Amendment) Ordinance, 2018 which has been signed by President of India on 2 November 2018 has reclassified  certain offense from Fine to Penalty under Companies Act 2013.

 Thus, Registrar of Companies (ROC) and Regional Director (RD) can now levy      penalties directly after issuing Show Cause Notice (SCN) , instead of going to judiciary for imposing fines or for following procedure for composition of offenses.

Even though , President has given his approval for the above ordinance , it is yet to be notified. 

Description	Section	PENALTY
Prohibition of Issue of shares at a discount	53(3)	Company and any officer in default being liable to a penalty
Notice to be given to Registrar for alteration of  share capital	64(2)	The company and any officer in default being liable to a penalty, instead of being punishable with fine
Annual Return	92(5)	1.The company being liable to a penalty, instead of being punishable with fine; 2. Every officer in default being liable to a penalty.
Statement to be annexed to Notice	102(5)	Every promoter, director, manager or other key managerial personnel who is in default being liable to a penalty.
Proxies	105	Every officer in default being liable to a penalty.
Resolutions and Agreements to be filed	117(2)	The company and every officer in default including liquidator of a company, if any, being liable to a penalty.
Report on annual general meeting	121(3)	The company and every officer in default being liable to a penalty.
Copy of financial statement to be filed with Registrar	137(3)	(i)              1.The company being liable to a penalty, instead of being punishable with fine; and (ii) The managing director and the Chief Financial Officer of the company, if any, and, in the absence of the managing director and the Chief Financial Officer, any other director who is charged by the board of directors with the responsibility of complying with the provisions of Section 137, and, in the absence of any such director, all the directors of the company, being liable to a penalty.
Removal, resignation of auditor and giving of special notice	140(3)	The auditor being liable to a penalty.
Company     to    inform     Director    Identification     Number     to Registrar	157(2)	The company and every officer in default being liable to a penalty.
Punishment for Contravention  – in respect of DIN	159	Non-compliance with Section 152 (Appointment of directors), Section 155 (Prohibition to obtain more than one Director Identification Number) and Section 156 (Director to intimate Director Identification Number) shall result in any individual or director of a company in default being liable to a penalty.
Number of Directorships	165(6)	If a person accepts appointment as a director in contravention of sub-section (1) of Section 165 such person shall be liable to a penalty.
Payment to Director for Loss of Office	191(5)	Director of the company being liable to a penalty.
Overall maximum managerial remuneration and managerial remuneration in case of absence or inadequacy of profits	197(15)	Any person in default being liable to a penalty.
Appointment of Key Managerial Personnel	203(5)	The company, every director and key managerial personnel of the company who is in default being liable to a penalty,
Registration of the offer of scheme involving transfer of shares	238(3)	The director being liable to a penalty, in

Thus, before ordinance section 117(2) states about Fine and after ordinance, the above sections state about Penalty.

Therefore, before ordinance default can be make good by petition in NCLT by filing compounding application Suo Moto or after receipt of notice form ROC/ MCA.

However, the Companies (Amendment) Ordinance, 2018 empowers more power to ROC & RD to levy penalty by issuing ‘Show Cause Notice’ without any petition to NCLT or any other authorities.

We can say now work burden of NCLT has been reduced by empowering more powers to levy Penalty to ROC or RD as the case may be.