During October, 2017 the MCA had disqualified more than 3 lakh directors of companies who failed to submit their annual filings for 3 or more years. This move was a bit harsh on part of certain innocent and genuine directors of companies, as they were also barred from accessing the online registry, i.e., MCA21 portal.
On December 29, 2017 the MCA has come up with much awaited scheme, named Condonation of Delay Scheme, 2018 for disqualified directors. This scheme would definitely prove to be a ‘saviour’ for the disqualified directors. They can save themselves from disqualification arisen from the defaulting companies.
Summary of Condonation of Delay Scheme, 2018
1. Effective date: This Scheme 2018, will be effective from Jan 01, 2018.
2. Validity period of the Scheme: The validity of Scheme, 2018 is for 3 months only which starts from Jan 01, 2018 till March 31, 2018.
3. Who can avail of the Scheme: This Scheme, 2018 is available to all the defaulting companies other than the companies which have been stuck off or whose names have been removed from the register of companies.
A defaulting company means as company which has not filed its financials or annual returns for a continuous period of 3 years with MCA.
4. Temporarily activation of DIN: During the period of the Scheme, the DIN of disqualified directors will be temporarily activated for filing of the required documents/ E-form son MCA portal.