9 August 2024
MCA introduces e-adjudication platform
 
The Ministry of Corporate Affairs (MCA), via Notification No. G.S.R. 476(E) announced the Companies (Adjudication of Penalties) Amendment Rules, 2024. These new rules are set to come into force on 16 September 2024 and represent a significant shift towards digitalization in the adjudication process.

Highlights of the notification

The key aspect of this notification is the introduction of Rule 3A in Companies (Adjudication of Penalties) Amendment Rules, 2014, which mandates the use of electronic modes for all proceedings under these rules. This encompasses issuing notices, submitting replies or documents, handling evidence, conducting hearings, attending to witnesses, passing orders, and even the payment of penalties. These processes will now be carried out exclusively through the newly developed e-adjudication platform by the Central Government.

Further, in cases where the email address of the person involved is unavailable, the adjudicating officer shall send notices via post to the last known address. A copy of the notice will be preserved in the electronic records on the e-adjudication platform. If no address is available, the notice will be placed directly on the said platform.

The annexure as Form no. ADJ shall be substituted in pursuant to the aforesaid Rule.
Our Comments
Due to this change, the e-adjudication platform is expected to streamline interactions between adjudicating officers, Regional Directors, and stakeholders, thereby reducing delays and ensuring a smoother flow of communication and decision-making. This shift to a fully electronic adjudication process marks a significant step forward in modernizing and improving the overall efficiency of the adjudication system.

In this era of digitalization, familiarity with the platform and its requirements will be essential to avoid any disruptions in compliance and communication. This is a major reform to further smoothen the ease of doing business in India and is a welcome move. This will reduce the friction in the overall process.

The official notification can be accessed here.
USA | Canada | Poland | UAE | India | Hong Kong | Japan
DISCLAIMER
This alert contains general information which is provided on an "as is" basis without warranties of any kind, express or implied and is not intended to address any particular situation. The information contained herein may not be comprehensive and should not be construed as specific advice or opinion. This alert should not be substituted for any professional advice or service, and it should not be acted or relied upon or used as a basis for any decision or action that may affect you or your business. It is also expressly clarified that this alert is not intended to be a form of solicitation or invitation or advertisement to create any adviser-client relationship.

Whilst every effort has been made to ensure the accuracy of the information contained in this alert, the same cannot be guaranteed. We accept no liability or responsibility to any person for any loss or damage incurred by relying on the information contained in this alert.

© 2024 Nexdigm. All rights reserved.