MCA has notified a scheme for defaulting companies and directors named “Condonation of Delay scheme 2018” in Circular No.16/2017 dated 29.12.2017. The scheme is in force with effect from 01-01-2018 and shall remain in force up to 31.03.2018. Companies registered under the Companies Act, 2013 (or its predecessor Act) are required to file their Annual Financial statements and Annual Returns with the Registrar of Companies and non-filing of such reports is an offense under the said Act.
MCA had recently identified 3,09,614 directors associated with the companies that had failed to file financial statements or annual returns in the MCA21 online registry for a continuous period of three financial years 2013-14 to 2015-16 and they were barred from accessing the online registry and a list of such directors was published on the website of MCA. With a view to giving an opportunity for the non-compliant, defaulting companies to rectify the default, in the exercise of its powers conferred under sections 403, 459 and 460 of the Companies Act, 2013, the Central Government has decided to introduce a Scheme namely “Condonation of Delay Scheme 2018” [CODS-2018]
Applicability of the scheme
This scheme is applicable to all defaulting companies (other than the companies which have been stuck off/whose names have been removed from the register of companies under the Act). A defaulting company is permitted to file its overdue documents which were due for filing till 30.06.2017 in accordance with the provisions of this Scheme.
Procedure to be followed
- The DINs of the disqualified directors de-activated at present shall be temporarily activated during the validity of the scheme to enable them to file the overdue documents.
- The defaulting company shall file the overdue documents in the respective prescribed e-Forms paying the statutory filing fee and the additional fee payable as per the Act and Rules.
- The defaulting company after filing documents under this scheme shall seek condonation of delay by filing form e-CODS 2018 attached to this scheme along with a fee of Rs. 30,000/-
- The DINs of the Directors associated with the defaulting companies that have not filed their overdue documents and the form CODS, and these are not taken on record in the MCA21 registry and are still found to be disqualified on the conclusion of the scheme in terms of the Act shall be liable to be deactivated on expiry of the scheme period.
- In the event of defaulting companies whose names have been removed from the register of companies under the Act and which have filed applications for revival under the Act up to the date of this scheme, the Director’s DIN shall be re-activated only NCLT order of revival subject to the company having a filing of all overdue documents
The scheme not to apply for certain documents
This scheme shall not apply to the filing of documents other than the following overdue documents :
- Form Number 20B/MGT-7- Form for filing Annual return by a company having share capital.
- Form 21A/MGT-7- Particulars of Annual return for the company not having share capital.
- Form 23AC, 23ACA, 23AC-XBRL, 23ACA-XBRL, AOC-4, AOC-4(CFS), AOC (XBRL) and AOC-4(non-XBRL) – Forms for filing Balance Sheet/Financial Statement and profit and loss account.
- Form 66- Form for submission of Compliance Certificate with the Registrar.
- Form 23B/ADT-1- Form for intimation for Appointment of Auditors.
The Registrar concerned shall withdraw the prosecution(s) pending if any before the concerned Court(s) for all documents filed under the scheme. However, this scheme is without prejudice to action under section 167(2) of the Act or civil and criminal liabilities, if any, of such disqualified directors during the period they remained disqualified.
At the conclusion of the Scheme, the Registrar shall take all necessary actions under the Companies Act, 1956/ 2013 against the companies who have not availed themselves of this Scheme and continue to be in default in filing the overdue documents.
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