ROC penalises Ex-MD of PFS Pawan Singh

The Registrar of Companies (ROC) found PTC India Financial Services Ltd and its Managing Director and Chief Executive Officer Pawan Singh to be in violation of The Companies Act, 2013, and fined both companies in three separate adjudication rulings. The Ministry of Corporate Affairs had launched an investigation in response to allegations submitted by three independent directors.

In order 1, According to the ROC, there was a violation of Section 178 of the Companies Act, 2013, because the Nomination & Remuneration Committee (NRC) was not constituted, as pointed out by the independent directors. In this case, the ROC fined PFS Rs 5,00,000 and Pawan Singh Rs 1,00,000 respectively.

Orders 2 and 3 constitute a violation of Section 149 of the Companies Act of 2013. PFS and Pawan Singh have each received separate penalties of Rs 70,000 in both cases. The directives were issued by the ROCs of Delhi and Haryana shortly after Singh was placed on leave by the business last week. Singh and PFS can file an appeal with the Regional Director of the Ministry of Corporate Affairs within the time limit.

On January 19, 2022, Kamlesh Shivji Vikamsey, Thomas Mathew T, and Santosh B Nayar resigned as PFS’s independent directors due to concerns over governance and compliance failures. They sent letters of resignation and other evidence of support with similar wording. The independent directors noted that there had been instances of corporate governance violations, such as decisions being made without consulting the board and modifying loan terms and conditions.

The company and its management have been investigated by the ROC, the Reserve Bank of India (RBI), and the Securities and Exchange Board of India (SEBI).