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        Corp. Laws, SEBI & IBC

        Awarding of Tenders to Blacklisted Companies

        February 24, 2015

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        Possession of Director Identification Number (DIN) is a mandatory requirement for being a director on the Board of a Company. There is no provision of law which requires cancellation of DIN in the event of ‘Blacklisting’ of companies. ‘Blacklisting of Companies’, if any, in the matter of tender process etc. of companies is carried out by the agencies/ organizations calling tenders; it has nothing to do with the Companies Act and therefore information about ‘Blacklisting’ is not available with the Registrars of Companies.

        This was stated by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Rajya Sabha today.

        Director Identification Number requirement remains mandatory; blacklisting in tenders does not lead to DIN cancellation and is agency-controlled. Possession of a Director Identification Number is a mandatory prerequisite for being a director and there is no provision requiring cancellation of a DIN due to a company being blacklisted; blacklisting in tender processes is implemented by the agencies calling tenders and is not within the Companies Act or recorded by the Registrar of Companies.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Director Identification Number requirement remains mandatory; blacklisting in tenders does not lead to DIN cancellation and is agency-controlled.

                                Possession of a Director Identification Number is a mandatory prerequisite for being a director and there is no provision requiring cancellation of a DIN due to a company being blacklisted; blacklisting in tender processes is implemented by the agencies calling tenders and is not within the Companies Act or recorded by the Registrar of Companies.





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                                ActsIncome Tax
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