The company admitted to the default, which occurred when it issued Compulsorily Convertible Preference Shares (CCPS) through private placement/preferential allotment following a shareholder sanction. The specific violation was the failure to obtain a valuation report from a Registered Valuer, as strictly required for such share issuance. The company clarified that, acting under the impression that a report obtained from a SEBI-registered Merchant Banker would suffice, this omission was an unintentional, inadvertent technical lapse resulting from lack of professional guidance. Since Cos Act does not prescribe a specific penalty for the violation of Section 62(1)(c), the liability was adjudicated under the general penalty provision, Section 450 of the Act. The ROC imposed a penalty of Rs 1,50,000/- (Rupees One Lakh Fifty Thousand Only).
(Link: ROC Adjudication Order Dated 03/11/2025)