DIR-3 KYC and Compliance Service Provider

My company - a private limited - availed "annual compliance package for private limited" from a company called MyOnlineCA Technologies Pvt Ltd or myonlineca.com. A week back we came to know that the DIN was deactivated due to incomplete KYC. We contacted MyOnlineCA about this and they say that DIR-3 KYC is not part of " a companies annual compliance" but is an "individual's compliance" and therefore it is not their responsibility. They also claim that it is not "explicitly mentioned in their service proposal" and therefore it is not covered. We claim that it is part of the annual compliance of a company since it is mentioned in the Company Rules of the Companies Act and is therefore not different from something like AOC-4 filing. We claim therefore that its coverage is implicit. Is our claim that DIR-3 KYC is part of companies "annual compliance" right and correct ? If our claim is right, what legal recourse do we have to get compensated where the only compensation we seek is that MyOnlinceCA performs the KYC at their cost.
Replies (3)
Quick Summary
A private limited company engaged a service provider for their annual compliance but discovered their DIN was deactivated due to incomplete DIR-3 KYC. The service provider claims DIR-3 KYC is an individual's compliance and not covered by their package, while the company argues it's an implicit part of annual company compliance. The discussion explores whether the company's claim is correct and what recourse they have, with some suggesting the cost of legal action may outweigh the benefits.

Even if your claim is right, the cost to enforce your claim shall be equivalent or more than the penalty involved. It's an implicit cost borne by you for taking an online service at a very low cost who would later back off citing all such reasons.

Pay Rs. 10000 to a lawyer for writing a legal notice or pay Rs. 10000 late fee for 2 directors KYC

Practically, I choose the 2nd one for my mental peace.
There is mis communication from both parties. Ideally it always has to be specific what all e-forms services will be done by consultant.

nevertheless, we can't change the past. Just do one thing, bear the cost and change the consultant.

penalty for non KYC is 5k. Let's accept it, consultant was not only in fault, they didn't bother to inform that such compliance is required and they won't be doing. If Company would know MCA Compliance, why would they heir any consultant agency.
I agree

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