Pending Proceedings on and before 16th Sep 2024 to Continue Under Old Rules: MCA amends Companies (Adjudication of Penalties) Rules

The Ministry of Corporate Affairs (MCA) amended the Companies (Adjudication of Penalties) Rules, 2024, stating that pending proceedings on or before September 16, 2024, will continue under the old rules. The amendment aims to provide clarity and ensure a smooth transition to the new rules. The MCA’s notification specifies that any adjudication of penalties initiated before the cutoff date will be governed by the provisions of the previous rules. This move is expected to address concerns regarding the applicability of new regulations to ongoing cases and provide a clear framework for the adjudication process.