REQUEST FOR MORE RELIEFS UNDER
CFSS-2020
Finance Minister announced several relief measures relating to Statutory
and Regulatory compliance matters across Sectors in view of COVID-19 outbreak on
24 March 2020.
The main relief as regards to companies & LLPs in India
is as follows:
No additional fees shall be charged for late filing during a
moratorium period from 01st April to 30th September 2020, in respect of any
document, return, statement etc., required to be filed in the MCA-21 Registry,
irrespective of its due date, which will not only reduce the compliance burden,
including financial burden of companies/ LLPs at large, but also enable
long-standing non-compliant companies/ LLPs to make a ‘fresh start’
NO ADDITIONAL FEES IN
RESPECT OF ANY DOCUMENT,RETURN OR STATEMENT , ETC.
Corporate
Affairs Minister announcement clearly says that no additional fees shall be
charged in respect any document , return or
statement , etc.
NON-APPLICABILITY OF CFSS-2020
However CFSS-2020 Circular issued by MCA General Circular 12/2020 / F 02/01/2020/CV dated 30
March 2020 says as follows :
Non Applicability of CFSS-2020:
· Company
under Strike off
· Form
SH-7 for Increase in Authorized Share Capital
· Form CHG-1 , CHG-4, CHG-8, CHG-9
related to Charge
EXISTENCE OF CONTRADICTION
There exists contradiction
between Finance Minister announcement and MCA circular.
Corporate Affairs Minster
has announced that CFSS-2020 Scheme will be applicable to in respect any document , return or statement ,
etc.
However , MCA says that CFSS
2020 is not applicable to SH-7 & Charge Forms.
BENEFITS SHOULD BE EXTENDED TO FORM SH-7 & CHARGE FORMS ALSO
The main intention of the GOI is to help the
companies & LLPs in India to reduce
the compliance burden, including financial burden of companies/ LLPs at large,
but also enable long-standing non-compliant companies/ LLPs to make a ‘fresh
start’;
However , MCA circular is not accomplishing the vision of
GOI.
According to the stakeholders , the benefit should have been
extended to form SH-7 & charge forms also.
This will help many companies and LLPs in India to make their
filings with the MCA up to date and can also become 100% complaint companies.
REQUEST
TO GOVERNMENT OF INDIA AND MCA
Hence , I request the Government of India , Ministry of
Corporate Affairs to align on the same vision of reducing the financial burdens
of errant companies to give them single time opportunity to make their complaints
up to date.
TO GIVE AN OPPORTUNITY
TO COMPANIES THAT HAVE BEEN STRUKEN OFF
CFSS-2020 exempts those companies which has been already stricken
off and those companies which is under the process of strike off.
However , Corporate Affairs Minister
statement says but also enable long-standing
non-compliant companies/ LLPs to make a ‘fresh start’
Status of Assets and Liabilities of Company after strike off
The liability of every director, manager or other officer,
who was exercising any power of management, and of every member of the company
dissolved under sub-section (5), shall continue and may be enforced even after
strike off.
Another concern for a company whose name has been struck-off
by the ROC is that Asset, Rights, Cash balances and other Current or
Non-current Assets of the company is vested with whom? In the absence of any
specific provisions in the Companies Act, 2013, it is highly debatable issue as
to status of assets after strike off.
I request that stricken off companies should be given an
opportunity to revive during the moratorium period. Those companies which has assets , cash and
bank balances should be an opportunity to revive their companies under this
scheme.
This will give an golden opportunity to those companies which
want to revive their companies to carry out their operations.
Please note that during this recession period , this will create
not only employment opportunities but also helps to growth in GDP of India.
Please note that many stricken off are stuck in NCLT for months on end with no respite in sight - NCLT is giving importance to bankruptcy cases over this - there are many companies that needs to be revived.
At least MCA should take it out of NCLT purview and give powers to RD to pass orders - then at least many cases can be closed, without clogging the judicial system with these routine petitions.
GIVE POWER TO RD FOR REVIVAL OF COMPANIES
At least MCA should take it out of NCLT purview and give powers to RD to pass orders - then at least many cases can be closed, without clogging the judicial system with these routine petitions.
REQUEST
Hence I request Prime Minister of India , Corporate Affairs
of Minister , higher officials of Ministry of Corporate Affairs to consider the
following:
·
To
include forms such as SH-7 and Charge forms under the CFSS-2020 Scheme
·
To
provide an opportunity to those companies which were already stricken off to
restart their operation under CFSS-2020 Scheme.
