Director Fined ₹50,000 for Unintentional Duplicate DIN

When reading Director Fined ₹50,000 for Unintentional Duplicate DIN, the important part is to keep the core facts intact while presenting the context in a clearer way for readers.

What This Update Means

Readers should treat this as a tax and compliance update, not as personal advice.

Key Reader Takeaways

• A director was penalized for holding two DINs in violation of statutory provisions.
• The key takeaway is that even inadvertent non-compliance attracts strict penalties under…
• The Registrar of Companies, Chandigarh, acting under Companies Act, 2013, imposed a penalty under Section 454 for violation of Section 155 read with Section 159 relating to holding multiple Director Identification Numbers (DINs).
• The director had inadvertently obtained a second DIN, resulting in a continuing default from 28 April 2023 until rectification on 8 November 2024 through surrender of one DIN via prescribed procedure.

LAMORC DIGITAL Context

The detailed section below preserves the source-backed information so readers can review the full context and important details in one place.

The Registrar of Companies, Chandigarh, acting under Companies Act, 2013, imposed a penalty under Section 454 for violation of Section 155 read with Section 159 relating to holding multiple Director Identification Numbers (DINs). The director had inadvertently obtained a second DIN, resulting in a continuing default from 28 April 2023 until rectification on 8 November 2024 through surrender of one DIN via prescribed procedure. Although the default was admitted as unintentional and without prejudice to stakeholders, the law strictly prohibits holding more than one DIN. Accordingly, a penalty of ₹50,000 was imposed, being the maximum prescribed, without additional daily penalty since the default was rectified. The adjudicating officer emphasized that compliance obligations are mandatory irrespective of intent. The noticee was directed to pay the penalty within 90 days through the MCA portal and informed of the right to appeal within 60 days before the Regional Director.

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS ROC Chandigarh Corporate Bhawan Plot No.4 B, Sector 27 B, Chandigarh, Chandigarh, India, 160019 Phone: 0172-2639415/2639416 E-mail: roc.chandigarh@mca.gov.in

Order ID: PO/ADJ/04-2026/CH/02026 | Dated: 28/04/2026

ORDER FOR ADJUDICATION OF PENALTY UNDER SECTION 454 OF THE COMPANIES ACT, 2013 (‘THE ACT’) FOR VIOLATION OF SECTION 159 OF THE COMPANIES ACT, 2013.

A. Appointment of Adjudicating Officer:

Ministry of Corporate Affairs vide its Gazette notification number S.O. 698(E) dated 10/02/2026 appointed undersigned as Adjudicating Officer in exercise of the powers conferred by section 454 of the Companies Act, 2013 [herein after known as Act] read with Companies (Adjudication of Penalties) Rules, 2014 for adjudging penalties under the provisions of this Act.

B. Individual details:

In the matter relating to RAJ SHARMA _________

C. Provisions of the Act:

If any individual or director of a company makes any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which may extend to five hundred rupees for each day after the first during which such default continues.

D. Facts about the case:

1. Default committed by the officers in default/noticee – The applicant has filed a Suo moto application under section 454 of the Companies Act, 2013. The Director, Mr. Raj Sharma admits that he has unintentionally contravened the provisions of Section 155 of the Companies Act, 2013 read with section 159. The Applicant have obtained two DINs i.e. 05204795 in 17.02.2012 and DIN 10139969 in 28.04.2023. The only default of the applicant was to the extent of accidently obtaining second DIN 10139969 on 28.04.2023. The applicant submits that the lapse was innocuous and occurred unintentionally and did not prejudice the interests of any person.

The applicant was in default of Duplicate DIN w.e.f. 28.04.2023 when the second DIN was obtained accidentally and default continued up to the date 08.11.2024 when the applicant has submitted an application in E-Form DIR-5 vide SRN AB1789960 to surrender his one of the DIN.

2. The applicant has filed a Suo moto application under section 454 of the Companies Act, 2013. The Director, Mr. Raj Sharma admits that he has unintentionally contravened the provisions of Section 155 of the Companies Act, 2013 read with section 159. The Applicant have obtained two DINs i.e. 05204795 in 17.02.2012 and DIN 10139969 in 28.04.2023. The only default of the applicant was to the extent of accidently obtaining second DIN 10139969 on 28.04.2023. The applicant submits that the lapse was innocuous and occurred unintentionally and did not prejudice the interests of any person.

1. If any individual or director of a company makes any default in complying with any of the provisions of section 152, section 155 and section 156, such individual or director of the company shall be liable to a penalty which may extend to fifty thousand rupees and where the default is a continuing one, with a further penalty which may extend to five hundred rupees for each day after the first during which such default continues.

2. The details of penalty imposed on the company, officers in default and others are shown in the table below:

(D) Additional Penalty (E) (*Per day of continuing default i.e. date of rectification of default less order issue date) Maximum limit for Penalty (F) 1 RAJ SHARMA having DIN as 10139969 50000 0 50000 3. The notified officers in default/noticee shall rectify the default mentioned above and pay the penalty, so applicable within 90 days of receipt of the order.

4. The notified officers in default/noticee shall pay the penalty amount via ‘e-Adjudication’ facility which can be accessed through the respective login IDs on the website of Ministry of Corporate Affairs and upload the copy of paid challan / SRN of e-filing (if applicable) on the ‘e-Adjudication’ portal itself. It is also directed that the penalty so imposed upon the officers in default shall be paid from their personal sources/income.

5. Appeal against this order may be filed in writing with the Regional Director, RD Chandigarh within a period of sixty days from the date of receipt of this order, in Form ADJ setting for the grounds of appeal and shall be accompanied by a certified copy of this order [Section 454 (5) & 454 (6) of the Act, read with Companies (Adjudication of Penalties) Rules, 2014].

6. For penal consequences of non-payment of penalty within the prescribed time limit, please refer Section 454(8) of the Companies Act, 2013.

Anupam Vashista, Registrar of Companies ROC Chandigarh

Readers should treat this as a tax and compliance update, not as personal advice.

This article is for general information based on available source information. It should not be considered legal, tax, investment, or financial advice.