The Ministry of Corporate Affairs has levied a hefty fine on DP Investment Services Pvt. Ltd. and its directors for neglecting their registered office obligations. The issuance of a Show Cause Notice under Section 206(1) of the Companies Act, 2013 marked the initiation of action against the company and its directors, which unfortunately didn’t receive any response.
The situation escalated when attempts to communicate with the company failed, with the Show Cause Notice being returned undelivered. A physical inspection of the registered office premises unveiled a locked office space without any signage indicating the company’s details. This raised concerns regarding the company’s adherence to maintaining its registered office at the recorded address as per MCA21 records.
Section 12 of the Companies Act, 2013 mandates strict obligations regarding the registered office, emphasising the need for visibility, verification, display of information, and compliance in various scenarios, including name changes or transitions for One Person Companies.
Despite the repeated notices and the absence of a response, the Adjudicating Officer scrutinised the case thoroughly and concluded that the company hadn’t maintained its registered office between 16 May 2023, and 30 November 2023. Consequently, a significant penalty of ₹5 Lakhs was imposed on the company and its directors.
The Ministry directed the company and its directors to rectify this non-compliance immediately upon receipt of the order copy. Additionally, the Ministry specified that the imposed penalty must be paid exclusively through the Ministry of Corporate Affairs portal.
This development underscores the criticality of complying with statutory requirements. The Ministry’s swift action serves as a reminder to businesses about the repercussions of non-compliance, urging them to prioritise adherence to regulatory norms.
Vakilsearch’s legal experts emphasise the vital significance of adhering to the Companies Act, 2013 emphasising how maintaining a registered office is pivotal for compliance. Non-compliance could lead to severe penalties and legal consequences, emphasising the necessity for proactive adherence to statutory requirements.
With over a decade of experience in the legal journalism field, Rajeev has a knack for simplifying complex legal matters for the common reader. His dedication to unbiased reporting and commitment to factual accuracy has established him as a respected figure in the Indian legal community. When he's not dissecting the latest court rulings, Pravien enjoys mentoring young journalists.
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