Penalty Slashed! Big Relief in MGT-6 Delay Case by Regional Director

The appeal was filed by the company named G2.Com India Pvt Ltd, on 22 July 2024, against the adjudication order issued by the Registrar of Companies (ROC), Karnataka, on 24 May 2024, because the company did not file Form MGT-6 on time. This action violated Section 89(6) of the Companies Act, 2013. The ROC held a hearing on 6 February 2024, and levied a penalty on the company of Rs. 5,00,000, along with a penalty on its 6 directors of Rs. 2,00,000 each, totalling Rs. 17 lakh penalty.

However, the appellants were not satisfied with this order and filed an appeal, for which they were given a chance to represent themselves. On the hearing day, the authorised representative of the company, Mr. Biswajit Ghosh, appeared before the Regional Director. He explained that the reason for the delay in filing Form MGT-6 was due to a lack of guidance, and the company had no intention of violating the law. Further, the Appellants stated that there was no fraud or financial gain from the non-compliance and requested that the penalty be reduced as allowed under Section 454(7) of the Companies Act.

Regional Director Decision

After reviewing the appeal and submissions, the regional director reduced the penalty to Rs 3,00,000 on the company and Rs 1,00,000 on each 6 directors. The appeal is disposed of now. The details of the revised penalty paid by the company and its director are as follows:

The Order is given below for referance: