Chapter XXIX - The Companies (Adjudication of Penalties) Rules, 2014. - F. No. 1/25/2013-CL-V - Companies Law

Adjudication of penalties: officers may impose penalties after notice and hearing, with appeals to Regional Director and prescribed procedures.

These Rules provide the statutory procedure for adjudicating penalties under the Companies Act by appointed adjudicating officers: issuance of a written show-cause notice specifying alleged non-compliance, minimum response periods with limited extension, opportunity of hearing, powers to summon persons and documents, and authority to proceed in absence after recording reasons. They require dated signed orders communicated to parties and the Central Government, prescribe factors for fixing penalty quantum (disproportionate gain, loss to investors/creditors, repetitiveness), direct penalty receipts to the Consolidated Fund, and establish an appeal regime to the Regional Director in Form ADJ with prescribed filing, scrutiny and disposal procedures.