The MCA imposes a hefty penalty of ₹75,000 Radar Security Solutions Private Limited. The penalty stems from the company’s failure to file Form INC 20A, as mandated by regulatory provisions.
Radar Security Solutions Pvt. Ltd., established on 17 February 2021, and operating under the jurisdiction of the Registrar of Companies, Karnataka, found itself in hot water due to non-compliance with statutory obligations. The company belatedly filed a suo-motu application on 10 July 2023, acknowledging its failure to adhere to section 10A4(1)(a) of the Act.
Under Section 10A(1)(a) of the Act, companies are obligated to submit e-form INC-20A within a stipulated time frame, typically within 180 days of incorporation. However, Radar Security Solutions Pvt. Ltd. missed this deadline, filing the form on 12 July 2022, a staggering 330 days past the due date.
This breach of regulatory requirements carries serious consequences. As per Section 10A(2) of the Act, companies failing to comply with such provisions face penalties, with fines amounting to ₹50,000 and additional penalties accruing for each day of continued non-compliance, subject to a maximum of ₹1 lakh.
Following an adjudication process initiated by the company, a hearing was convened on 5 December 2023, attended by representatives including Mr. Venugopal M and Ms. Veena Kirshnamurthy. Upon review of financial statements and submissions, it was determined that the company qualifies as a small company under Section 2(85) of the Companies Act, 2013.
Consequently, provisions allowing for reduced penalties, as outlined in Section 446B of the Act, were applied. Despite mitigating factors, the gravity of the violation led to a penalty of ₹75,000 being imposed on the company and all culpable officers.
The directive mandates prompt payment of the penalty within 90 days from the issuance of the order, accompanied by the filing of Form INC-28. Directors are reminded that penalties must be settled using personal funds. Payment can be made online via the MCA website, specifying requisite details for record-keeping and compliance.
This enforcement action underscores the MCA commitment to upholding regulatory integrity and ensuring corporate accountability. Radar Security Solutions Pvt. Ltd. and implicated officers are urged to promptly address the penalty and take necessary corrective measures to prevent future breaches.
Our experts at Vakilsearch say ‘This case highlights the importance of timely compliance with company law provisions. Even small companies are not exempt from penalties. Seeking legal guidance can help businesses navigate complex regulations and avoid potential fines.’
Companies must be vigilant about adhering to filing deadlines and regulatory requirements. Non-compliance can lead to financial penalties and reputational damage. Vakilsearch offers comprehensive legal services to help businesses ensure compliance and navigate legal complexities. Contact us today for expert guidance and support.
