Directors who were recently disqualified for failure to file MCA annual return can file MCA eCODS form 2018 to regularise compliance and avoid permanent disqualification for a period of 5 years

By on 14-11-2018

CONDONATION OF DELAY SCHEME – 2018

The Condonation of Delay Scheme, 2018 announced by the Ministry of Corporate Affairs is active from 1st January 2018 to 31st March 2018. Directors who were recently disqualified for failure to file MCA annual return can file MCA eCODS form 2018 to regularise compliance and avoid permanent disqualification for a period of 5 years.The main features of the scheme is:

•  Ministry of Corporate Affairs (MCA) has announced a Scheme namely “Condonation of Delay scheme 2018” [CODS-2018] with effect from 01.01.2018 and shall remain in force up to 31.03.2018. There is no change in the scheme filed by MCA before hon’ble High Court of Delhi and one announced vide circular no. 16/2017 on 29.12.2017.
•  This scheme is applicable to all defaulting companies (other than the companies which have been stuck off/whose names have been removed from the register of companies under section 248(5) of the Act).
•  A defaulting company is permitted to file its overdue documents, which were due for filing till 30.06.2017, in accordance with the provisions of this Scheme
•  In the case of defaulting companies whose names have not been removed from register of companies:-
•  The DINs of the disqualified directors de-activated at present shall be temporarily activated during the validity of the scheme to enable them to file the overdue documents.
• The defaulting company shall file the overdue documents in the respective prescribed e-forms paying the statutory filing fee and additional fee payable as per section 403 of the Act read with Companies (Registration Offices and fee) Rules, 2014 for filing these overdue documents.
• The defaulting company after filing documents under this scheme, shall seek condonation of delay by filing form e-CODS 2018 attached to this scheme along with a fee of Rs. 30,000/- (Rs. Thirty Thousand only) as prescribed under the Companies (Registration Offices and Fee) Rules, 2014 well before the last date of the scheme.
• The DINs of the Directors associated with the defaulting companies that have not filed their overdue documents and the e-form CODS, and these are not taken on record in the MCA21 registry and are still found to be disqualified on the conclusion of the scheme in terms of section 164(2)(a) r/w 167(1)(a) of the Act shall be liable to be deactivated on expiry of the scheme period.
• In the event of defaulting companies whose names have been removed from the register of companies under section 248 of the Act and which have filed applications for revival under section 252 of the Act up to the date of this scheme, the Director’s DIN shall be re-activated only after NCLT order of revival subject to the company having filing of all overdue documents
• E-form CODS – 2018 shall be made available on 20.02.2018 or other date as may be notified on website of MCA. Each company intending to avail the scheme shall be required to file e form CODS 2018 along with consolidated fees of Rs. 30000/- after filing of all overdue documents.