Herox Pvt Ltd Penalized for SBO Norm Violations

The corporate affairs ministry has penalized startup Herox Pvt Ltd and two Munjal family members for violating significant beneficial owner norms. Herox faces Rs 6 lakh in fines, while Suman Kant Munjal and Akshay Munjal each face Rs 1.5 lakh in penalties. Both company and individuals plan to appeal.

The corporate affairs ministry has imposed penalties on startup Herox Pvt Ltd and two members of the Munjal family for breaches of significant beneficial owner (SBO) norms, totalling Rs 6 lakh for the company and Rs 1.5 lakh each for Suman Kant Munjal and Akshay Munjal, according to a Tuesday-issued order.

Herox and the individuals breached the requirements set under Section 90 of the Companies Act, 2013, leading to penalties from the Registrar of Companies (RoC), Delhi & Haryana. Although Herox and its directors plan to appeal, the infractions highlight ongoing efforts by the ministry to ensure corporate transparency and prevent misuse of corporate structures.

The 14-page RoC order revealed that despite notices from significant beneficial owners, Herox failed to file the required e-form BEN-2, violating Section 90(4) of the Act. Compliance came only after RoC proceedings initiated. An appeal against the order can be filed within 60 days with the Regional Director (NR).

Herox maintains that no shareholder non-compliance occurred, citing the submission of BEN-1 forms and noting that the holding company had filed the BEN-2 forms. In response to the RoC notice, Herox has since filed the needed BEN-2 forms and plans to appeal the penalties.

(With inputs from agencies.)