MCA Confirms No Requirement to Move Pending Proceedings Online

The Ministry of Corporate Affairs (MCA) has issued the Companies (Adjudication of Penalties) Second Amendment Rules, 2024 clarifying the prospective application of the previous amendment moving all adjudication proceedings online.

In August this year, the MCA notified the Companies (Adjudication of Penalties) Amendment Rules, 2024, amending the Companies (Adjudication of Penalties) Rules, 2014. The amendment had added subrule 3A providing for mandatory online adjudication of all proceedings, including notices, replies, hearings, orders, penalties, etc., through the e-adjudication platform developed by the Central Government for this purpose. The amendment came into effect on September 16, 2024.

The same subrule has been further amended to add a proviso to restrict the application of the subrule to proceedings pending before the Adjudicating Officer or Regional Director on the date of such commencement, clarifying that they shall continue as per provisions of these rules existing prior to such commencement.