Adjudication of penalties

13 March 2019
Dear Expert

The Company was incorporated in the Month of Sep 2017 under the Companies Act 2013 with ROC bangalore. The Company had to file File INC-22 form for intimating and Finalizing the Registered office address. The Company had a tussle with the Consultant executing the Job and he failed to file the form. The Company now had to file Form aoc-4 and MGT-7 for closure of the Financial year 2017-18 and upon detection of the omission to file INC-22, the company also filed INC-22 with additional fees. The ROC in turn rejected the INC_22 form and said to attach a Format of Adjudication of Penalties under Section 454, whcih has a minimum penalty of Rs 100000 per director.

I request your kind guidance for this as we have already submitted the Adjudication application to the ROC. Our company has not even started the Buiness and levy of Rs 200000 fine would put the director under a lot of distress and financial burden. is there any method where the penalty can be waived off.

Kindly advise as the matter is urgent and the penalty for AOC-4 and MGT-7 is increasing daily.

Thank You

CA Ankit R Momaya (Expert)

Click to Talk 13 March 2019
You can file Form MGT-7 now itself without filing Form INC-22 so that your additional fees for MGT-7 will be saved.

sachin.c. (Querist)
13 March 2019
Thank You Ankit Sir for the Reply. But is there any Remedy for the Adjudication of penalties, as Rs 2,00,000 fine is to harsh to a small company not being a habitual offender. It is quite burdensome onto the company as the company is still in its incorporation stage. The Company has to close down then. Kindly Suggest a remedy.

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