Recently, Subramanian Swamy had filed complaint against Priyanka Vadra for possessing multiple DINs. Subramanian Swamy had also complained against Karti Chidambaram. This put social media on storm during elections but storm is not over with elections. Daily, social media teams of all parties unearth some new names with multiple DINs.
After new government sworn in centre, name of many ministers is open over twitter. This was discussed over social media that Nitin Gadkari has six DINs as well. Piyush Goyal who himself is a Chartered Accountant, has two DINs.
Until 31st March 2014, Applying for or owning multiple Director Identification Numbers was an offense with punishable with fine of five thousand rupees with additional five hundred rupees daily until offence continue.
After 31st march 2014, this offence is punishable with imprisonment for a term which may extend to six months or with fine which may extend to fifty thousand rupees and where the contravention is a continuing one, with a further fine which may extend to five hundred rupees for every day after the first during which the contravention continues.
When I personally checked many of these allegations of offence, I noticed some usual pattern in these DIN.
Earlier, Applicant has to apply DIN online and a provisional DIN was generated. Applicant then got online form printed, encloses supporting documents and proof of payment. DIN cell of the Ministry of Corporate Affairs, approves these DIN on its satisfaction.
My experience says, they disapproved more DIN than approved. There may be some mismatch in documentary proof like father name displayed on PAN and your Passport may have some spelling variation or like. There were many reasons for disapproval of you DIN. All these disapproved DINs still showing against name of applicants. However, story does not end here.
There are many slips between the cup and the lip. Applicant may have entered some wrong information or there may be some typing error in the form, but applicant may have a provisional DIN. Sometime applicant may have second thought about DIN application and never applied for its approval. Surely, applicant still has this provisional DIN against its name. Sometime, no payment was made by applicant or DIN application reached to DIN cell after stipulated time period.
This results in:
- Many applicants have multiple DINs showing against their names;
- MCA may soon exhaust all available DINs.
Should not MCA automatically remove rejected or abandoned DIN? Why all these provisional or rejected DIN are still in record and showing against name of applicant? Any prosecution on the basis of faulty MCA21 record against any innocent applicant is unfortunate.
Today on 31st may 2014, in a workshop organized by Northern India Regional Council of Institute of Company Secretaries of India, Mr. Sanjay Gupta, Deputy Director, Ministry of Corporate Affairs said that MCA portal display all historic record related to DIN application. Any record shown there does not means, applicant has more than one DIN. The video link is here.
During discussion with many senior company secretaries present there, these points emerged:
- On a PAN only single DIN can be approved.
- More than one DIN may be generated and approved only some illicit means like multiple PAN in name of same person.
- If he is using more than one DIN, it may be prime facie evidence of contravention.
- To safeguard position and save some unwanted complaints, a person may file RTI with MCA and seek clarification on multiple DIN showing against his name.