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
