The Ministry of Corporate Affairs (“MCA”) has issued a notification on 5th August 2024 introducing Companies (Adjudication of Penalties) Amendment Rules, 2024 (“Amendment Rules”) to further amend the Companies (Adjudication of Penalties) Rules, 2014, enhancing the MCA e-adjudication process.
Legal Updates
Ministry of Corporate Affairs Introduces MCA e-adjudication Platform
Effective from 16th September 2024, the Amendment Rules aims to modernize and improve the overall efficiency of the adjudication system.
Key Features of the MCA e-adjudication Platform
Rule 3A MCA E-Adjudication Procedures
The Amendment Rules has inserted Rule 3-A which addresses the “Adjudication Platform” as follows:
- All proceedings (including issue of notices, filing replies or documents, evidence, holding of hearing, attendance of witnesses, passing of orders, and payment of penalty) conducted by adjudicating officers and Regional Directors will be carried out electronically via the MCA e-adjudication platform.
- The MCA e-adjudication platform will be developed by the Central Government.
- In case, any person to whom a notice/ summon has to be issued, does not have an e-mail address, the officer will send the notice by postal mail to the last intimated address available in records.
- In case no address is available, a copy of the notice will be electronically archived on the MCA e-adjudication platform.
- The Annexure has been updated, and Form No. ADJ has been revised to reflect changes in the Memorandum of Appeal.
Notices, Hearings, and Documentation on the E-Hearing System
The new framework ensures that all hearings and documentation are securely managed on the e-hearing system, improving efficiency, transparency, and accessibility for stakeholders in India.
Source and Official Notification:
Ministry of Corporate Affairs, Notification No. 437, dated 5th August, 2024.