E-Adjudication And Ministry Of Corporate Affairs
With the new guidelines stated by the Ministry of Corporate Affairs, some significant changes shall be done to the overall compliance ecosystem of companies. By the end of the financial year 2023, the Ministry will introduce its new compliance portal for companies – MCA21 which will aim to bring ease of doing business support to entrepreneurs through e-adjudication, e-consultation, and compliance management-like features on the platform.
Apart from bringing ease in compliance, it was necessary to bring changes in the adjudication processes of companies for which a new e-adjudication system will be introduced.
Through, a new electronic adjudication process will be included, it will provide a stable dispute redressal mechanism with a reduction in overall cost and compliance for companies.
E-Adjudication and Company Compliances
E-adjudication is a proposed system for stakeholders to help them file their disputes and get them resolved by the company through the MCA Portal. The objective behind placing such a mechanism is to reduce the physical interference between stakeholders and MCA. It will certainly add value to the queries of the stakeholders where all disputes shall be addressed by the MCA Portal electronically and tracking of the progress towards such disputes could be done easily.
The E-adjudication facility will help companies and their stakeholders to know all the compoundable offenses of the company and litigation measures to undertake through the National Company Law Tribunal.
The guidelines for the facility stated that introducing E-adjudication along with MCA21, shall either include Artificial intelligence or machine learning or a designated government official as the designated authority to resolve the issues of the companies and handling procedures of decriminalization of offenses.
The MCA21 Portal will also facilitate the companies to receive their PAN Registration, details of TAN Deduction, and Collection Account Number through the platform itself by linking the entire system with the Central Board of Direct Taxes (CBDT).
E-Adjudication with Registrar on MCA21
With current rules, Registrar or the designated officer is considered to be the adjudicating authority to take decisions on the penal provisions of the company after accessing the degree of default and non-compliance. With e-adjudication, it will be simpler for the companies and the stakeholders to file their adjudicatory responses to the Registrar and keep track of decisions taken on their issues.
The MCA21 portal once improved will become a key platform to submit all the compliance filings by the company to undertake adjudication, consultation, scrutiny, and compliance management. The platform is yet to bring more changes in the overall compliance management through introducing a Chat bot consultation system, mobile apps, helpdesk, enhanced UI, and usage of APIs for compliance filing and redressal of grievances.
The ministry found it essential to bring all changes to the platform as it is a single window for the entities and Ministry to keep off hassles of compliances and to facilitate ease of doing business with the companies electronically. The E-adjudication and changes in compliance management were necessary to bring end-to-end adjudication measures and an online hearing system that will ensure business sector growth by facilitating single window clearance of grievances of these entities.
Need Secretarial Compliance Help, we are here info@cs-india.com