NewsStocksAirfloa Rail Technology Limited Receives RoC Penalty Orders for Delayed CSR ComplianceAirfloa Rail Technology Limited Receives RoC Penalty Orders for Delayed CSR Compliance
Airfloa Rail Technology Limited received two RoC adjudication orders dated January 7, 2026, imposing total penalties of ₹45.63 lakhs for delayed CSR obligation transfers in FY 2020-21 and FY 2022-23. Additional penalties of ₹1.96 lakhs and ₹2.00 lakhs respectively were imposed on two directors. The company plans to file an appeal seeking lenient treatment, citing voluntary disclosure and subsequent compliance.
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Airfloa Rail Technology Limited has disclosed receiving two adjudication orders from the Registrar of Companies (RoC), Tamil Nadu, imposing significant penalties for delayed compliance with Corporate Social Responsibility (CSR) obligations. The orders, both dated January 7, 2026, address violations related to the delayed transfer of unspent CSR amounts to specified funds under Schedule-VII of the Companies Act, 2013.
Penalty Details and Financial Impact
The RoC has imposed substantial penalties on the company and its directors across two separate orders covering different financial years:
| Parameter: | FY 2022-23 Order | FY 2020-21 Order |
|---|---|---|
| Order ID: | PO/ADJ/12-2025/CN/01241 | PO/ADJ/12-2025/CN/01244 |
| Company Penalty: | ₹19,64,272.00 | ₹25,99,631.00 |
| Director Penalty (Each): | ₹1,96,427.00 | ₹2,00,000.00 |
| Payment Timeline: | 90 days from receipt | 90 days from receipt |
| Total Company Penalty: | ₹45,63,903.00 | - |
The penalties have been imposed on the company and two directors - Dakshinamoorthy Venkatesan (DIN: 00232210) and Dakshna Moorthy Manikandan (DIN: 00232275) - who have been identified as officers in default.
Regulatory Violations and Background
The adjudication orders stem from violations of Section 135(5) and Section 135(6) of the Companies Act, 2013, which govern the transfer of unspent CSR obligations. The company had filed a suo moto adjudication application with RoC on May 8, 2025 (SRN N30641906), acknowledging the delayed transfers of CSR amounts to the Prime Minister's National Relief Fund.
The violations covered multiple financial years (2019-20, 2020-21, 2021-22, and 2022-23), though the penalties specifically address the delayed transfers for FY 2020-21 and FY 2022-23. The penalty amounts correspond to the equivalent unspent CSR obligation amounts that were transferred belatedly to the designated funds.
Company's Response and Future Actions
Airfloa Rail Technology Limited has expressed disagreement with the severity of the penalties imposed. The company believes that the levy of maximum penalty is unjustified, particularly considering that it proactively disclosed the non-compliance through a suo moto application and subsequently rectified the violations.
The company plans to challenge the orders through the following actions:
- Filing an appeal with the Regional Director as the appellate authority
- Submitting a compounding application under Section 441 of the Companies Act, 2013
- Seeking lenient treatment based on voluntary disclosure and subsequent compliance
- Completing the appeal process within the permissible timeline
Financial Implications
The company has acknowledged that if it fails to obtain a waiver or reduction of the imposed penalties, the financial impact will affect its profitability to the extent of the final penalty amount. With total company penalties of ₹45.63 lakhs, this represents a significant financial burden that could impact the company's financial performance if the appeal is unsuccessful.
The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, ensuring transparency with stakeholders regarding regulatory communications and their potential financial implications.
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