Adjudication order for violation of section 203 (5) of Companies Act, 2013 in the matter of M/s. VIRUPAKSHA ORGANICS LIMITED.

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F. No:9/01/ADI3/SEC.203(5) of 2013/ROC(TG)/RD(SER)/2025 / /7.2 } BEFORE THE REGIONAL DIRECTOR, SOUTH EAST REGION TO MINISTRY OF CORPORATE AFFAIRS, HYDERABAD LYRaS IN THE MATTER OF COMPANIES ACT, 2013 IN THE MATTER OF VIRUPAKSHA ORGANICS LIMITED

• 1.M/s. VIRUPAKSHA ORGANICS LIMITED Plot No B1 & B2, IDA, Gandhinagar Kukatpally, Medchal Malkajhiri District, Rangareddi, Hyderabad, Telangana, India, 500037.

• 2.Mr. Chandra Mouliswar reddy Gangavaram, 8-3-169/143/A 1° Floor, Siddartha Nagar, Near Krishnakanth Park, S.R. Nagar, Hyderabad-500038, Telangana, India.

• 3. Mr. Balasubba Reddy Mamilla, 8-3-169/1, Flat No 301, Preetham Residency, Siddartha Nagar, Behind Vengala Rac Nagar, Near Krishnakanth Park, S.R. Nagar, Hyderabad-500038, Telangana, India.
• 4. Ms, Vedavathi Gangavaram, 8-3-169/143/A 1° Floor, Siddartha Nagar, Near Krishnakanth Park, S.R. Nagar, Hyderabad-500038, Telangana, India.

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5. Mr. Chandrasekhar Reddy Gangavaram, Flat No. 103, Vishaal Towers, Western Hills, Samathanagar, Kukatpally,

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• . Hyderabad-500072, Telangana, India.

6. Mr. Markandeya Gorantla, Plot No.1, Mahalakshmi Residency, Near Dolari Dhani, Kompally, Quthbullapur, KV Ranga Reddy, Secunderabad-500014, Telangana, India.

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7. Mr. Venkata Ranga Narasimha Mahesh, Villa 159 Vasanta City, Hafeezpet Road, Hafeezpet, K.V Rangareddy, Hyderabad-500049, Telangana, India.

Date of hearing: G9.06.2025 Present: Mr. S. Sarveswar Reddy, PCS

, : Jette ADpellants . .

ORDER

1. M/s. VIRUPAKSHA ORGANICS LIMITED has filed an appeal under section 454(5) of the Companies Act, 2013 along with the above appellants in e- form ADJ vide SRN AB2655529 dated 07.02.2025 against the adjudication order issued vide F No. ROC/HYD/VIRUPAKSHA/AD3/S.203/2024-25 dated 27.11.2024 under section 454(5) of the Companies Act, 2013 read with section 203(5)*of the Companies Act, 2013 passed by the Registrar of Companies, Telangana.

2. Registrar of Companies in his Adjudication order dt. 27.11.2024 has stated after considering the facts and circumstances of the case that the company and its directors and every Key Managerial Personnel of the company who is in default are liable to penalty as prescribed under Section 203(5) of the Act for. violation of Section 203(1) of the Companies Act, 2013. Further, Registrar of Companies, Telangana passed an order dated 27.11.2024 after hearing Mr. S. Sarveswara Reddy on 07.08.2024 and by fixing a penalty as under: )

UNDER COMPANIES ACT, 2013

• I. FOR NON-APPOINTMENT OF COMPANY SECRETARY

Penalty as per Companies Act, 2013

|S.no||Nameofthecompany&Officer|Officer in default|Final penalty|
|---|---|---|---|
||M/s. Virupakasha Organics|Limited|Rs.5,00,000/-|
|2.|Mr.<br>Chandra<br>Mouliswara|Reddy<br>Gangavaram,|Rs.5,00,000/-|
||Managing Director|||
||Mr.BalaSubbaReddyMamilla,PastDirector||Rs.5,00,000/-|

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|||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|See7.|Mr.|Chandrasekhareeereddy|Gangavaram,|Whole|Rs.5,00,000/-ee|
|eeeMr.|Venkata|Ranga|Narasimha|Mahesh|Pidimarri,|Rs.5,00,000/-eee|
|ieee|
|II.|FOR|NON-APPOINTMENT|OF|CHIEF|FINANCIAL|OFFICER:-|
|Penalty|as|per|Companies|Act,|2013|)|
|Name|of|the|company|&|Officer|in|Final|penalty|
|eee|[eee]|
|2.|Mr.|Chandra|Mouliswara|Reddy|Rs.5,00,000/-|
|f|[lenoonensmoreer]|3.|Mr.|Bala|Subba|Reddy|Mamilla,|Past||Rs.5,00,000/-|
|4.|Mr.|Ravinder|Reddy|Devireddy,|Past|Rs.4,70,000/-|
|Pfiietmeonir|[frsawtoncor]|7.|Mr.Mr.|ChandrasekharMarkandeya|ReddyGorantla,Gangavaram,|Past|Rs.5,00,000/-Rs.5,00,000/-BBE|
|PS|[[rimanutetoier]|Mr.|Venkata|Ranga|Narasimha|Mahesh||Rs.5,00,000/-|
|3.|The|matter|was|heard|on|29.05.2025|and|09.06.2025.|Mr.|Sarveswar|
|BE.|Reddy,|Company|Secretary|in|practice/Authorised|representative|has|
|fers|ttended|the|personal|hearing|on|behalf|of|the|applicants|on|29.05.2025|
|Re, Oe|é,|[i]|Page 3 of|[5]|

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and made submission about the delay in filing the Adjudication appeal. The Regional Director heard the appellant and passed the interim order by observing that the violations are from 01.04.2014 whereas the ROC has passed the adjudication order 02.11.2018 to 31.01.2021. The order should have been for the period 01.04.2014 to 31.01.2021. The order of AO is modified to this extent. Further, appellant has stated that in view of section 149(12) three of Directors are to be excluded being independent and nonexecutive directors.

4. In this regard, the Authorized Representative has submitted documents to show that Appellant No.4, 6 and 7 were non-executive and/or independent directors. Further, as directed by the Regional Director Mr. Balasubba Reddy

, Mamilla, Whole Time Director of the Company filed an Affidavit dated 34.06.2025 stating that Mrs. Vedavathi Gangavaram (DIN 02870966), Mr. Mahesh Venkata Ranga Narasinha Pidimarri (DIN 06899296) and Mr. Gorantla Markandeya (DIN 03384248) were Non-Executive directors during the period of default and they were not involved in the day to day affairs or management of the company during the period of non-compliance.

  - 5, That the applicant company has stated that Mr. Ravindra Reddy Devireddy, a non-executive director of the company during the period of noncompliance as mentioned in the appeal, is deceased on 31.05.2023 and requested to exclude him from levying the penalty under section 383 (1) A of the Companies Act, 1956 read with Section 203 of Companies Act, 2013. 

  6. In view of the above, it is concluded that appellant 4, 6 and 7are not liable for the violation of Section 203 of the Act. 

7. As the AO in the order dated 27.11.2024 has erred in fixing the penalty in respect of appellant no 4, 6 and 7 who were independent and /or NonExecutive directors during the period of default with respect to nonappointment of a Whole Time Company Secretary and Chief Financial

Bes,“ é sf Page 40f5 oy wy

; ‘on in accordance with Section 383(1) A of the Companies Act, 1956

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: and Section 203 of Companies Act, 2013 i.e., from 25.03.2006 to 31.01.2021. Accordingly, the order of the AO/ROC dated 27.11.2024 is hereby modified to the extent that order be considered for the period 01.04.2014 to 31.01.2021 and the proceedings against the appellant No.4, 6 and 7 (Mrs. Vedavathi Gangavaram (DIN 02870966), Mr. Markandeya Gorantla (DIN 03384248) and Mr. Venkata Ranga Narasinha Mahesh Pidimarri (DIN 06899296)) are set aside as they fall in the exempted category.

Issued on this SP~day of July, 2025.

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Copy for information and necessary action to :

1. Registrar of Companies, Ministry of Corporate Affairs, Hyderabad, Telangana.

2. The Joint Secretary, E-Governance Cell, Ministry of Corporate Affairs, New Delhi.

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