Big relief for 21 lakh Directors with deactivated DINs; Rs 5000 penalty cut to just Rs 500

The directors whose Director Identification Numbers (DINs) were deactivated following non-filing of new know-your-customer norms can get them reactivated by giving KYC details with a late fee of Rs 500. They can file the e-form till October 5, said government sources. It is likely to be notified shortly.

Earlier, the fee for late filing was Rs 5,000. The Ministry of Corporate Affairs (MCA) decided to give 15 more days to around 21 lakh directors to comply with the KYC norms. The deadline for filing DIR-3 KYC form had lapsed on September 15. The filing could be done free of cost till then.

The decision to extend the deadline comes after nearly 21 lakh directors out of a total of around 33 lakh failed to file their KYC details with the MCA-21 system and subsequently, their DINs were deactivated. Only 12.15 lakh directors filed their personal details with the government.

DIN is a unique identification number without which a director cannot file any document on behalf of a company.

Several directors, as well as organisations such as Institute of Chartered Accountants of India (ICAI) and Institute of Company Secretaries of India (ICSI) had sought more time for filing citing practical difficulties such as time-consuming process and difficulty in the functioning of the website.

On July 14 this year, the MCA, under the supervision of its secretary Injeti Srinivas, had introduced the KYC norms for all the 33 lakh directors registered in the country.

The electronic form is aimed at preventing fly by night operators and dummy directors who are non-existent.

Directors have to provide details such as personal mobile number, e-mail address, Permanent Account Number (PAN) and Aadhaar number in the new form, duly signed by a chartered accountant (CA) or a company secretary (CS). There is also be a video verification feature requiring directors to upload a 30-second video clip introducing themselves.

From next year, the new form is to be filed by the directors annually at the time of filing annual statements.

Late filing of e-KYC filing will attract a fee of Rs 5,000 after October 5 deadline ends. Each director who has been allotted DIN on or before March 31, 2018, has to file it.

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The e-KYC rule is also applicable to those directors who have been disqualified by the government in the past for flouting norms.

Source: DNA Money