Streamlining Compliances vs. Avoiding Consequential Penalties: The Right Choice for Corporates
Author: CS Pradeep Kumar Parakh Introduction: In today's complex business environment, companies face numerous regulatory requirements and compliances that must be adhered to. Failing to comply with these regulations can result in severe penalties, which may have significant repercussions on a company's reputation, financial standing, and overall operations. On the other hand, streamlining compliances can be a proactive approach that not only ensures adherence to the law but also protects the company from facing consequential penalties. To highlight the importance of making the right choice, we will examine a real-world example of an adjudication of penalty under Section 454 of the Companies Act, 2013, involving M/S Takraf India Private Limited for violating provisions of Section 135(6) of the Companies Act, 2013. The Case of M/S Takraf India Private Limited: F.NO. ROC/ CHN/ TAKRAF/ ADJ Order/ S.135(6) / 2023, dated 11 July 2023, marks a significant event in the