MCA notifies Adjudication of Penalty Orders through Digital Platform, rules for Issuance of Notices [Read Notification]

The Ministry of Corporate Affairs ( MCA ) has issued a notification about the mandate of adjudication of penalty orders against companies from 16 September 2024, through the e-adjudication platform developed by the Central Government for this purpose.

All adjudication activities must be conducted electronically via the e-adjudication platform developed by the Central Government. This initiative will ease the burden on Registrars of Companies ( ROCs ) and expedite the resolution of adjudication proceedings.

On Monday, the MCA announced the Companies ( Adjudication of Penalties ) Amendment Rules, 2024, which require all adjudication proceedings—including notices, filings, hearings, and penalty payments—to be handled electronically through the government’s e-adjudication platform.

The notification stated as follows: –

“(1)  These rules may be called the Companies ( Adjudication of Penalties ) Amendment Rules, 2024. 

(2)  They shall come into force from the 16th day of September, 2024.

2. In the Companies (Adjudication of Penalties) Rules, 2014,―

(i) after rule 3, the following rule shall be inserted, namely:- 

“3A. Adjudication Platform.- (1) On the commencement of the Companies (Adjudication of Penalties) Amendment Rules, 2024, all proceedings (including issue of notices, filing replies or documents, evidences, holding of hearing, attendance of witnesses, passing of orders and payment of penalty) of adjudicating officer and Regional Director under these rules shall take place in electronic mode only through the e-adjudication platform developed by the Central Government for this purpose.

(2) In case the e-mail address of any person to whom a notice or summons is required to be issued under these rules is not available, the adjudicating officer shall send the notice by post at the last intimated address or address available in the records and the officer shall preserve a copy of such notice in the electronic record in the e-adjudication platform referred to in sub-rule (1): 

Provided that in case no address of the person concerned is available, the notice shall be placed on the e-adjudication platform.”

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