Non-Disclosure of Related Party Transactions in Board Report violates S. 134(3)(h): MCA Imposes ₹4 Lakh Penalty

The Ministry of Corporate Affairs (MCA), the regulatory body governing companies in India, has imposed a significant penalty of ₹5 lakh on a company for lapses in disclosing related party transactions within its board reports. This regulatory action underscores the strict enforcement of corporate governance standards mandated by the Companies Act, which requires transparent and comprehensive disclosure of all transactions involving related parties to ensure accountability and prevent potential conflicts of interest.