BADLI LOGISTICS PRIVATE LTD FINED FOR BORROWING WITHOUT FILING INC-20A-COMMENCEMENT OF BUSINESS

 BADLI LOGISTICS PRIVATE LTD FINED FOR BORROWING WITHOUT FILING INC-20A-COMMENCEMENT OF BUSINESS

BADLI LOGISTICS PRIVATE LTD VS ROC, NEW DELHI

SECTION 10A(1) OF THE COMPANIES ACT ,2013

A company must file Form INC-20A within 180 days of incorporation before commencing business or borrowing.

VIOLATION:

The company took unsecured borrowing (a loan of ₹3.5 crore) on 19 May 2021 before filing Form INC-20A.

Form INC-20A must be filed before a company can commence business or exercise any borrowing powers under Section 10A of the Companies Act, 2013.

FINE AMOUNT

A total fine of Rs 1,18,000/- was levied on company  and its directors for the violation.

LESSONS LEARNED

After incorporation, it is the duty of the Directors to ensure that e-form INC-20A is filed with the ROC before commencing business or exercising borrowing powers. Otherwise, both Company and its Directors are liable for penalty under Section 10A of the CA, 2013.

A REDUCED PENALTY

The ROC Delhi imposed a reduced penalty on the company and daily penalties on the directors, reflecting statutory non-compliance under Section 10A of the Companies

FURTHER COURSE OF ACTION TO BE TAKEN BY THE COMPANY

·      Penalties must be paid via the MCA e-Adjudication portal within 90 days of the order.

·      The company must also ensure that Form INC-20A is filed properly and other ROC compliances are up to date.

·      Appeals against the ROC order can be filed with the Regional Director in Form ADJ within 60 days.

R V SECKAR , FCS, LLB 79047 19295