𝗣𝗲𝗻𝗮𝗹𝘁𝘆 𝗜𝗺𝗽𝗼𝘀𝗲𝗱 𝗼𝗻 𝗦𝗮𝗷𝗷𝗮𝗻 𝗜𝗻𝗱𝗶𝗮 𝗟𝗶𝗺𝗶𝘁𝗲𝗱 𝗳𝗼𝗿 𝗡𝗼𝗻-𝗖𝗼𝗺𝗽𝗹𝗶𝗮𝗻𝗰𝗲 𝘄𝗶𝘁𝗵 𝗦𝗲𝗰𝘁𝗶𝗼𝗻 𝟭𝟰𝟵(𝟭) 𝗼𝗳 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 𝗔𝗰𝘁 𝗦𝘂𝗺𝗺𝗮𝗿𝘆 𝗼𝗳 𝘁𝗵𝗲 𝗢𝗿𝗱𝗲𝗿 𝗣𝗮𝘀𝘀𝗲𝗱 𝗯𝘆 𝗥𝗢𝗖 𝗙𝗮𝘂𝗹𝘁 𝗮𝗻𝗱 𝗟𝗲𝗴𝗮𝗹 𝗕𝗮𝘀𝗶𝘀 The Registrar of Companies (ROC), Mumbai, has issued a penalty order against Sajjan India Limited under Section 454(3) for violating Section 149(1) of the Companies Act, 2013. [img:e73H74y2n]

𝗦𝗲𝗰𝘁𝗶𝗼𝗻 𝟭𝟰𝟵(𝟭): Mandates that certain companies, including listed companies and large public companies (as per thresholds of paid-up share capital or turnover), must appoint at least one woman director. 𝗥𝘂𝗹𝗲 𝟯 𝗼𝗳 𝗖𝗼𝗺𝗽𝗮𝗻𝗶𝗲𝘀 (𝗔𝗽𝗽𝗼𝗶𝗻𝘁𝗺𝗲𝗻𝘁 𝗮𝗻𝗱 𝗤𝘂𝗮𝗹𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻 𝗼𝗳 𝗗𝗶𝗿𝗲𝗰𝘁𝗼𝗿𝘀) 𝗥𝘂𝗹𝗲𝘀, 𝟮𝟬𝟭𝟰: Specifies that any intermittent vacancy of a woman director must be filled within 3 months or by the next board meeting, whichever is earlier.

𝗗𝗲𝘁𝗮𝗶𝗹𝘀 𝗼𝗳 𝘁𝗵𝗲 𝗠𝗶𝘀𝘁𝗮𝗸𝗲 𝟭) 𝗖𝗼𝗺𝗽𝗮𝗻𝘆'𝘀 𝗙𝗮𝗶𝗹𝘂𝗿𝗲: Sajjan India Limited was required to appoint a woman director as its paid-up share capital (₹3.81 crore) and turnover (₹1580.89 crore) exceeded the thresholds as of March 31, 2022. 𝟮) 𝗦𝗽𝗲𝗰𝗶𝗳𝗶𝗰 𝗩𝗶𝗼𝗹𝗮𝘁𝗶𝗼𝗻: The company's previous woman director resigned on May 25, 2022, creating an intermittent vacancy. The company failed to fill this vacancy within the required timeline (by August 26, 2022), resulting in a default from August 26, 2022, to March 28, 2023 (215 days).

𝟯)𝗔𝗱𝗺𝗶𝘀𝘀𝗶𝗼𝗻𝘀: The company admitted the default in its reply dated April 26, 2023, and later rectified the issue by appointing a woman director on May 29, 2023.

𝗣𝗲𝗻𝗮𝗹𝘁𝗶𝗲𝘀 𝗟𝗲𝘃𝗶𝗲𝗱 The following penalties were imposed under Section 172 (general penalty provision): 𝟭)𝗦𝗮𝗷𝗷𝗮𝗻 𝗜𝗻𝗱𝗶𝗮 𝗟𝗶𝗺𝗶𝘁𝗲𝗱 (𝗖𝗼𝗺𝗽𝗮𝗻𝘆): ₹1,57,500 (₹50,000 base penalty + ₹500/day for 215 days).

𝟮)𝗢𝗳𝗳𝗶𝗰𝗲𝗿𝘀 𝗶𝗻 𝗗𝗲𝗳𝗮𝘂𝗹𝘁: Raghunathan Ananthanarayanan (CEO): ₹1,07,500. Pawan Kumar Agarwal (CFO): ₹1,07,500. 𝟯)𝗧𝗼𝘁𝗮𝗹 𝗣𝗲𝗻𝗮𝗹𝘁𝘆 𝗣𝗮𝘆𝗮𝗯𝗹𝗲: ₹3,72,500.

𝗥𝗲𝗾𝘂𝗶𝗿𝗲𝗱 𝗔𝗰𝘁𝗶𝗼𝗻𝘀 𝗣𝗲𝗻𝗮𝗹𝘁𝘆 𝗣𝗮𝘆𝗺𝗲𝗻𝘁: The company and its officers must pay the penalties through the Ministry of Corporate Affairs (MCA) portal within 90 days of receiving the order. 𝗗𝗲𝗳𝗮𝘂𝗹𝘁 𝗥𝗲𝗰𝘁𝗶𝗳𝗶𝗰𝗮𝘁𝗶𝗼𝗻: The company is directed to maintain compliance with Section 149(1) going forward.