KEY MCA PENALTY AREAS (2025-2026 TRENDS):
MCA IMPOSING
SIGNIFICANT PENALTIES FOR NON COMPLIANCES UNDER COMPANIES ACT,2013
The Ministry of
Corporate Affairs (MCA) imposes significant penalties—ranging from ₹1 lakh to
over ₹7 lakh—on companies and their directors for compliance lapses under the
Companies Act, 2013. Frequent penalties stem from failures in filing annual
returns (MGT-7/AOC-4), maintaining registered offices (INC-22), or appointing
key personnel.
KEY MCA PENALTY AREAS (2025-2026 TRENDS):
STATISTICS ON
NON-COMPLIANCE
·
1250 Cases have been filed for non-compliance
during 25-26 and fines collected around Rs 75 Crores.
·
TOP VIOLATIONS
·
Reporting Issues – 45%
·
Audit Lapses -30%
·
Regulatory non-compliances -25%
FINANCIALS MISTATEMENTS
· Fraud Losses Rs 120 Crores
DIRECTOR
DISQUALIFICATIONS
· Disqualifications 320
· Banned Directors 95
REASONS FOR
DISQUALIFICATIONS
· Fraud 40%
· Negligence 30%
· Conflict of Interest 25%
CONSEQUENCES OF
NON-COMPLIANCE:
PERSONAL LIABILITY:
Penalties are often
imposed on both the company and every officer in default (directors).
INCREASED SCRUTINY:
Repeated failure to
respond to notices leads to ex-parte orders and higher penalties.
Failure to file forms can restrict a company's
ability to borrow money, raise funds, or operate legally.
APPEAL TO REGIONAL
DIRECTOR
Companies have 90 days
to pay penalties or can file appeals to the Regional Director (RD) within 60
days of receiving an order.
RISKS &
CONSEQUENCES
• Monetary fines can strain finances.
• Directors may face personal liability.
• Persistent non-compliance can lead to
prosecution or disqualification of directors.
• Reputation damage and restrictions on future
operations.
PREVENTIVE ACTION:
Timely filing of annual
returns, financial statements, and board reports is critical to avoid
penalties.
R V SECKAR FCS,LLB 79047
19295
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