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Govt to deactivate DINs of 21 lakh directors over KYC non-compliance



The government has decided to deactivate the Director Identification Numbers (DINs) of as many as 21 lakh directors of total 33 lakh active directors who were asked to furnish their KYC (Know Your Customer) details as part of the government’s efforts to crack down on shell companies to stop illicit fund flows. Only 12.16 lakh directors fulfilled the KYC criteria, a Corporate Ministry statement said.

A DIN is a unique number that is allotted to those who are directors on the boards of registered companies. Last year, the government had barred over 3 lakh directors from holding directorship over their failures to furnish KYC details.

News agency PTI quoted officials saying those who have failed to comply with the guidelines may face action, and their accounts will be reactivated only after a fee payment of Rs 5,000 along with the requisite form. This means they will not be able to able to sign any compliance document on behalf of their company until they furnish KYC details.

In June, the government had asked company directors, including those who were disqualified too, and designated partners in LLPs (limited liability partnerships) to submit their KYC details by furnishing the DIR-3 KYC e-form. The last date for complying with the new norms by way of submitting form ‘DIR-3 KYC’ without fee ended on September 15. But only around 12.16 lakh directors completed the KYC process till the last date. The process of deactivating the non-compliant DINs is in progress and is likely to be completed by September 17, 2018,” the ministry said in a communication on its website.

While filling in details in the DIR-3 KYC e-form, directors had to mandatorily enter the unique personal mobile number and personal e-mail ID. The directors of Indian origin had been asked to mandatorily furnish their PAN, Aadhaar, permanent residential address, and their passports.

After the deadline of September 15, the MCA 21 system would mark all approved DINs — allotted on or before March 31 this year — against which ‘DIR-3 KYC’ form has not been filed as “de-activated”, the ministry said. The MCA 21 is used by all the stakeholders to submit requisite filings to the ministry.

Since the last date to file these KYC details has passed, the form may be filed “in respect of such de-activated DINs only with a fee of Rs 5,000, without prejudice to any other action that may be taken”, said the ministry, which is implementing the Companies Act. In 2017, the government had disqualified over three lakh people from holding a directorship at registered companies as they were not carrying out business activities for a long time.

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