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Around 3 lakh persons those who were disqualified as a directors of defaulting companies under Section 164(2)(a) read with Section 167(1)(a) of the Companies Act of 2013, have been given a major relief by the introduction of the Condonation Of Delay Scheme, 2018 by the Ministry of Corporate Affairs (MCA), so that the extension can be granted to the non-compliant companies to file their overdue financial statements, annual returns and any other documents till March 31, 2018.
Recently 3,09,614 directors, those who were on the board of directors and have failed to file the financial statements or annual returns for a continuous period of three financial years during 2013-14 to 2015-16 have been disqualified, according to the Monthly Summary of the MCA for October, 2017, dated November 16. The name of 2,24,733 companies has also been struck off from the register of companies under section 248 of the act of 2013, because of inactive participation of the companies for the period of two immediately preceding financial year and not giving any application and getting the status of dormant company under section 455. Restrictions have been imposed by the ministry of finance on operation of their bank accounts in accordance with the law and the sale of immovable and movable properties has also been restricted by the court until they are restored.
Because of all this, many of the directors have also filed writ petition in various High Courts asking for the relief from disqualifications.
The scheme so called the “Condonation Of Delay Scheme” has been introduced by the central government w.e.f January 1, 2018, to give the companies a chance to rectify their mistakes i.e. granting the extension to the defaulting companies to file all this by March 31, 2018. As already mentioned above, the defaulting company for this scheme is one that hadn’t submitted their financial statements, annual return for the continuous period of 3 years. There is also a temporary reactivation of the (DIN)Director Identification Number for the directors of the defaulting company for the online submission of the documents on the payment of Rs 30000 for the condonation of delay in addition to the statutory filing fee.
And the companies those have been deregistered under section 248(5) of the Act of 2013 and the companies that has filed application for the revival to National Company Law Tribunal (NCLT), there DIN no will be activated again upon the order of NCLT.
“Under this scheme, the registrar have to withdraw all the pending prosecution in respect to the documents, except any action under section 167(2) of the Act of 2013 and any civil or criminal liabilities of the disqualified directors incurred during the period of disqualification”.
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