22.1 The Committee noted that most of the suggestions received under Chapter XXIV related to matters on the filing of various forms etc. in the Registry. These were recommended to be addressed through modifications in the Rules/forms etc.

Fee for filing etc. -

22.2 Section 403(1) allows a company to file documents belatedly up to two hundred and seventy days from the date on which such document becomes overdue for filing (i.e. after providing for the prescribed period for filing as per the concerned provision) by paying additional fee and without attracting liability for prosecution/penal action. Delayed filings beyond two hundred and seventy days can still be done with the maximum additional fee but the company is also liable for prosecution/penal action. This framework has been specifically mentioned for filings under Section 89 (filing of declaration of beneficial interest), Section 92 (filing of Annual Return), Section 117 (filing of resolutions and agreements), Section 121 (AGM report for listed companies), Section 137 (filing of financial statements) and Section 157 (company to inform DIN of directors to ROC). It is, therefore, being viewed that in respect of delay in filings under any other section (other than the six mentioned above), the company will have to obtain condonation of delay under Section 460(b) and is not eligible for immunity from prosecution/penal action for any delay if condonation is not obtained. It is observed that the provision, coupled with low filing fees, has resulted in a low level of annual statutory filings as compared to previous years. The Committee, therefore, recommended for necessary changes to be made in the Act to bring clarity that the requirement of filing with additional fee for 270 days under first proviso to section 403 is applicable only to the six sections. Further, additional fees should be enhanced substantially (by up to 10 times of current prescribed amount) to deter non-compliance, and if a company files a document within the original period, not including the period allowed with additional fees, should be reduced to zero. A separate requirement for additional fees for the sections other than six sections may also be prescribed (refer paragraph 28.10 of Part I of the report also).

22.3 The Committee also felt that it may be clarified (in the Rules) that, irrespective of the delay, obtaining condonation of delay is not a pre-requisite to filing a document. It is a separate process under section 460 in respect of all belated filings (refer paragraph 18.2 of Part II of the report also).

Filing delay framework: clarify limited immunity for certain statutory filings and increase additional fees to deter non compliance. The Committee recommended clarifying that the 270 day additional fee immunity from prosecution applies only to six specified statutory filings (declaration of beneficial interest, annual returns, resolutions and agreements, listed-company AGM reports, financial statements, and director identification intimation), substantially increasing additional fees to deter non compliance, reducing the ordinary filing fee to zero for filings made within the original prescribed period, and specifying in the Rules that condonation under Section 460 is a separate process and not a prerequisite to filing belated documents.