Powers to appoint inspectors to inspect books, papers of a company u/s 206(5) Companies Act 2013 of Central Government delegated to Regional Directors



New Detlhi, the 29/04/2016

S.O. E. In exercise of the powers conferred by sub-section (1) of section 458 of the Companies Act (18 of 2013)’ the Central Government being satisfied that circumstances warrant, hereby delegates the powers to appoint inspectors for inspection of books and papers of a company under sub-section (5) of section 206 as ordered by Central Government to the Regional Directors.

F No. 3/5162015-CL.II

Amardccp Sing Bhatia
Joint Secretary


As per section 206, where on a scrutiny of any document filed by a company or on any information received by him, the Registrar is of the opinion that any further information or explanation or any further documents relating to the company is necessary, he may by a written notice require the company
(a) to furnish in writing such information or explanation; or
(b) to produce such documents, within such reasonable time, as may be specified in the notice.

Further as per sub sections (5) and (6) of section 206, the Central Government is authorsied to direct inspection of records of a company by inspectors appointed by it.

The sub relevant sub section (5) , (6) and (7) are read as under:

(5) Without prejudice to the foregoing provisions of this section, the Central Government may, if it is satisfied that the circumstances so warrant, direct inspection of books and papers of a company by an inspector appointed by it for the purpose.

(6) The Central Government may, having regard to the circumstances by general or special order, authorise any statutory authority to carry out the inspection of books of account of a company or class of companies.

(7) If a company fails to furnish any information or explanation or produce any document required under this section, the company and every officer of the company, who is in default shall be punishable with a fine which may extend to one lakh rupees and in the case of a continuing failure, with an additional fine which may extend to five hundred rupees for every day after the first during which the failure continues.

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