RD MUMBAI DELETES PENALTY OF ₹8,00,000 FOR MISSING CIN ON LETTERHEADS LEVIED BY ROC GOA ON INDU PACKAGING (DAMAN) LIMITED

 

RD MUMBAI DELETES PENALTY OF ₹8,00,000 FOR MISSING CIN ON LETTERHEADS LEVIED BY ROC GOA ON INDU PACKAGING (DAMAN) LIMITED

BACKGROUND OF THE CASE

COMPANY INVOLVED:

 Indu Packaging (Daman) Limited

INITIAL PENALTY:

ROC Goa had imposed fines under Section 454 of the Companies Act, 2013.

REASON:

The company allegedly failed to comply with statutory requirements, including proper disclosure of CIN on official documents like letterheads.

FINE AMOUNT LEVIED:

₹5,00,000 on the company and ₹1,00,000 each on three directors, totaling ₹8,00,000.

APPEAL TO RD MUMBAI

RIGHT TO APPEAL:

Under Section 454(5) & (6) of the Companies Act, companies can appeal adjudication orders to the Regional Director within 60 days.

OUTCOME:

RD Mumbai reviewed the case and deleted the penalty, effectively nullifying ROC Goa’s order.

IMPLICATION:

 The company and its directors are relieved from paying the fines, and the alleged non-compliance is no longer penalized.

KEY TAKEAWAYS FOR COMPANIES

CIN DISCLOSURE:

 Companies must ensure their Corporate Identification Number is printed on all official documents (letterheads, invoices, notices, etc.).

COMPLIANCE VIGILANCE:

 Even minor lapses like missing CIN can attract penalties, though appeals may succeed if the order is found excessive or procedurally flawed.

APPEAL MECHANISM:

Regional Directors serve as appellate authorities, providing companies a chance to contest ROC orders.

APPELLATE REVIEW

ROC Goa’s penalty against Indu Packaging (Daman) Limited for missing CIN on letterheads has been struck down by RD Mumbai, reinforcing the role of appellate review in corporate compliance matters.

# YOUR COMPLIANCE PARTNER R V SECKAR, FCS, LLB 79047 19295,