HYDERABAD ROC IMPOSED A WHOOPING PENALTY OF ₹27,46,500 ON A DIRECTOR FOR HOLDING MORE THAN ONE DIN NUMBER

 

HYDERABAD ROC IMPOSED A WHOOPING

 PENALTY OF ₹27,46,500 ON A DIRECTOR

 FOR HOLDING MORE THAN ONE DIN

 NUMBER

ROC Hyderabad vs Chukkamamba Sri Velamati (ECMAT LIMITED)

FACTS OF THE CASE

The Hyderabad Registrar of Companies (ROC) imposed a penalty on Chukkamamba Sri Velamati (din 00218567), for violating section 155 of the companies act, 2013, which prohibits holding more than one director identification number (DIN).

VIOLATION

Ms. Chukkamamba Sri Velamati obtained a second DIN (02749222) on August 21, 2009, while already possessing an existing DIN (00218567) obtained on July 1, 2006. This constitutes a violation of Section 155.

ACTION TAKEN BY THE DIRECTOR:

Ms. Velamati submitted an application for adjudication of the offense under Section 159 of the Companies Act, 2013, acknowledging the violation.

COMPLIANCE

The order required the penalty to be paid from the individual's personal sources through the MCA's e-Adjudication portal within 90 days of receiving the order.

APPLY FOR ADJUDICATION

The action taken by the individual was to apply for adjudication and, presumably, surrender the duplicate DIN (02749222) after the adjudication process was initiated, as the violation (holding duplicate DINs) is a prerequisite for penalty under Section 159.

FINAL THOUGHTS

ROC ,Hyderabad passed the  order on 25/09/2025 vide order number  PO/ADJ/09-2025/HD/00681. Levy of penalty of ₹27,46,500 is too exorbitant considering the level of offence committed.

Director can appeal to RD , Hyderabad to reduce the penalty by substantiating with adequate reason.

It is really perplex to note why ROC Hyderabad has levied such a huge penalty for obtaining a duplicate DIN due to inadvertence.  

R V SECKAR   FCS, LLB 79047 19295