Recategorise 23 more offences under companies law: Panel

New Delhi, November18

A government-appointed high-level panel has proposed recategorisation of 23 more offences under the companies law. The committee has suggested amendments to 46 penal provisions, “so as to either remove criminality, or to restrict the punishment to only fine, or to allow rectification of defaults through alternative methods”, an official release said today.

The proposals are aimed at further de-clogging of the criminal justice system in the country, it added. As per the committee’s report submitted to Corporate Affairs Minister Nirmala Sitharaman, 23 out of the 66 remaining compoundable offences under the Companies Act could be recategorised.

Such offences could then be dealt with in-house adjudication framework wherein these defaults would be subject to a penalty levied by an adjudicating officer.

According to the report, there could be reduction in the quantum of penalties in respect of six provisions, which were shifted to the in-house adjudication framework through the recent amendments to the Act. — PTI