MCA Reduces DIR-3 KYC Penalty for 15 Days

Ministry of Corporate Affairs (MCA) extends the date of filling of DIR-3 KYC with reduced late fees.

MCA conducted a drive for updation of KYC of the directors of all the companies registered with registrar of companies (ROC) vide form DIR-3 KYC.

Every director who obtained a DIN before 31st March 2018 had to participate in the KYC drive. The extended last date for completion of the drive was kept as 15th September. Approximately 21 lakh directors couldn’t file the KYC with MCA. All such DINs (Director Identification Number) were deactivated from 16th September onwards.

While filling the DIR3 KYC, directors were required to have their unique mobile numbers and email ids along with digital signature token (DSC).

On the last day i.e. 15th September, MCA website did not work properly and many directors tried completing the process but could not succeed due to technical issues. OTP generation and form upload both functionalities didn’t work properly.

Understanding the technical issues and the number of DINs deactivated, MCA has decided to reduce the original late fee of Rs. 5000 to Rs. 500. The reduced penalty will be applicable for a period of 15 days i.e. from 21st September to 5th October 2018.  From 6th October onwards, the penalty would increase to the original amount of Rs. 5000.

Filling of DIR3 KYC is mandatory even for disqualified directors. This is the last opportunity given and shall be quickly utilized by all the directors with deactivated DINs.