Penalties Imposed on Herox Pvt Ltd and Munjal Family Members for Violating SBO Norms

The corporate affairs ministry penalized startup Herox Pvt Ltd and Munjal family members, Suman Kant Munjal and Akshay Munjal, for breaching Significant Beneficial Owner (SBO) norms. The violations led to fines totaling Rs 8 lakh for Herox and Rs 1.5 lakh for each individual. Legal recourse remains available for the penalized parties.

The corporate affairs ministry has levied penalties on startup Herox Pvt Ltd and Munjal family members, Suman Kant Munjal and Akshay Munjal, for significant beneficial owner (SBO) norms violations.

Herox faces a fine of Rs 8 lakh, while Suman Kant Munjal and Akshay Munjal must each pay Rs 1.5 lakh according to an official order. Under Section 90 of the Companies Act, 2013, companies are mandated to disclose SBO details.

The penalties were instituted by the Registrar of Companies (RoC), NCT of Delhi & Haryana. The RoC's 14-page order highlighted that Herox failed to take measures to file the requisite e-form BEN-2 despite receiving notices in BEN-1 from the beneficial owners.

Only after legal proceedings began did Herox file the necessary forms, indicating non-compliance with Section 90(11) of the Act, the RoC order stated. The BEN-1 form is for SBOs to declare their status to the company, and BEN-2 is for the company to report to the ministry.

Those penalized have the option to appeal the order to the Regional Director (NR) within 60 days of receipt.

(With inputs from agencies.)