Central Government Introduces E-Adjudication Platform for Penalties: Key Changes in Companies (Adjudication of Penalties) Amendment Rules, 2024

The Ministry of Corporate Affairs has issued a notification to amend the Companies (Adjudication of Penalties) Rules, 2014. Here's a summary of the key points from the notification:

Title and Commencement:

1. The amended rules are titled the Companies (Adjudication of Penalties) Amendment Rules, 2024.
2. They will come into force on September 16, 2024.

Amendments:

1. Insertion of Rule 3A - Adjudication Platform:

   • Upon commencement of the amendment, all proceedings under these rules will occur electronically via the e-adjudication platform developed by the Central Government. This includes issuing notices, filing replies or documents, presenting evidence, holding hearings, attendance of witnesses, passing orders, and paying penalties.
   • If the e-mail address of a person to whom a notice or summons is required to be issued is not available, the adjudicating officer will send the notice by post to the last known address or the address available in records. A copy of such notice will be preserved electronically in the e-adjudication platform.
   • If no address is available, the notice will be placed on the e-adjudication platform.

2. Substitution of the Annexure:

   • The existing Annexure to the Companies (Adjudication of Penalties) Rules, 2014, will be replaced with a new Annexure.

This amendment emphasizes the shift towards a digital platform for handling adjudication proceedings, streamlining the process, and ensuring that records are maintained electronically.