ROC Imposes Penalty on company for using money before filing Form PAS-3

ROC Imposes Penalty on company for using money before filing Form PAS-3

The Registrar of Companies (ROC), Pune found that Innoctive Technologies Pvt. Ltd. and its directors violated the Companies Act, 2013 because the company used money received from a private investment before filing the required return of allotment (Form PAS-3) with the ROC.

The company had issued 226 Compulsorily Convertible Preference Shares (CCPS) in early 2022 through private placement.

The company accepted its mistake and voluntarily informed the ROC, stating that it was only one transaction, no investor suffered any loss, and no unfair benefit was taken.

The company also requested relief, as it is a recognised startup and small company. After reviewing the matter, the ROC imposed penalties of Rs. 200,000 on the company and Rs. 100,000 each on directors Vidyadhar Shinde, Raju Salve, and Deepesh Kuruppath.

The penalties must be paid personally within 90 days through the MCA e-Adjudication portal, and the company and directors can appeal before the Regional Director, Navi Mumbai, within 60 days.