Centre Empowers RoCs With Adjudication Powers To Ease NCLT Burden

New Delhi, Feb 20 (KNN) In a move aimed at reducing the case load on the National Company Law Tribunal (NCLT) and easing compliance for businesses, the Ministry of Corporate Affairs (MCA) has granted additional adjudication powers to Registrars of Companies (RoCs).

Under a recent notification, the ministry has designated RoCs as adjudicating officers under Section 454 of the Companies Act and Section 76A of the LLP Act, enabling them to adjudicate and impose penalties on companies and limited liability partnerships (LLPs) for statutory non-compliances.

Faster Case Resolution

The reform is expected to strengthen first-level enforcement by allowing RoCs to directly handle penalty-based cases, thereby reducing the litigation burden on the NCLT.

With RoCs taking up adjudication responsibilities, cases related to minor statutory defaults can be resolved more swiftly, promoting timely intervention and quicker disposal.

Push for Decriminalisation

The revised adjudication framework is primarily penalty-based, reinforcing the government’s broader push towards decriminalisation of minor corporate offences. By shifting focus from prosecution to proportional penalties, the move is expected to reduce litigation while maintaining regulatory discipline.

Industry experts noted that empowering RoCs would help them move beyond administrative functions and play a larger enforcement role within the corporate regulatory ecosystem.

Expansion of Regional Directorates

In a parallel development, the MCA has reconstituted and expanded the number of Regional Directorates (RDs) from seven to ten. The new RD offices include Ahmedabad, Bengaluru and Chandigarh, in addition to existing centres such as Chennai, Guwahati, Hyderabad, Kolkata, Mumbai, Navi Mumbai and New Delhi.

The expansion is aimed at improving adjudication and appellate capacity across regions and ensuring more efficient distribution of cases.

Streamlined Appeals Framework

Officials indicated that the dual reform, empowering RoCs and increasing RD offices, will help reduce jurisdictional ambiguities and facilitate faster disposal of penalty proceedings under both company and LLP laws.

The changes, effective February 16 as per the MCA notification, are expected to create a more structured and efficient corporate dispute resolution mechanism while supporting ease of doing business.

(KNN Bureau)