Parliament Question: Statutory Compliance and Corporate Governance

GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA UNSTARRED QUESTION NO. 1301 ANSWERED ON MONDAY, 27TH JULY 2026 SHRAVANA 5, 1948 (SAKA) STATUTORY COMPLIANCE AND CORPORATE GOVERNANCE QUESTION 1301. SHRI Imran Masood: WILL THE MINISTER OF CORPORATE AFFAIRS BE PLEASED TO STATE: (a) whether the Government has conducted any sector-wise and State-wise assessment of the cases of violation of the provisions related to financial statements, statutory compliance and corporate governance by various companies in the country during the period from April to June, 2026; (b) if so, whether any separate statement of inspection, investigation and penal actions taken against listed and unlisted companies has been included therein, if so, the details thereof; (c) whether the Government has identified those companies which have repeatedly failed in compliance and developed any special monitoring mechanism against them, if so, the details thereof; (d) whether the consolidated data on these cases is being made available on a public dashboard or portal; and (e) if so, the details thereof and if not, the reasons therefor? ANSWER MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS; MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT AND HIGHWAYS (SHRI HARSH MALHOTRA) (a) & (b) No such specific assessment has been conducted. The Central Government orders inquiries, inspections, investigations as per the relevant provisions of the Companies Act, 2013 based on complaints, references and information regarding violations and other non-compliances. The penal actions pending and taken by field offices against listed and unlisted companies are reviewed regularly.(c) With regard to repeated non-compliance, there is no special monitoring mechanism in light of the existing provisions of Section 451 and 454A of the Companies Act, 2013. Section 451 provides higher punishment for repeated offences and prescribes that if a company or an officer of a company commits an offence punishable either with fine or with imprisonment and where the same offence is committed for the second or subsequent occasions within a period of three years, then, that company and every officer thereof who is in default shall be punishable with twice the amount of fine for such offence in addition to any imprisonment provided for that offence. Similarly, Section 454A provides penalty for repeated default and prescribes that where a company or an officer of a company or any other person having already been subjected to penalty for default under any provisions of this Act, again commits such default within a period of three years from the date of order imposing such penalty passed by the adjudicating officer or the Regional Director, as the case may be, it or he shall be liable for the second or subsequent defaults for an amount equal to twice the amount of penalty provided for such default under the relevant provisions of this Act. (d) & (e) No. However, adjudication is undertaken through e- adjudication module and all adjudication orders are available in public domain. Consolidated data (company-wise) regarding ongoing enforcement matters against companies is not published on the MCA portal as that would impede the inquiry/investigation process. The general compliance status of enforcement action is available in Annual Report on Working and Administration of Companies Act, 2013 which is uploaded on MCA portal. *****