Condonation of Delay Scheme-2018 (CODS- 2018)

Condonation of Delay Scheme-2018 (CODS- 2018)
Madhu Kotwani Jan 01,2018

Condonation of Delay Scheme-2018 (CODS- 2018)


Condonation of Delay Scheme 2018 is a scheme introduced by central Government as an opportunity for the non-compliant, defaulting companies to rectify the default, in exercise of its powers conferred under sections 403, 459 and 460 of the Companies Act, 2013

Defaulting Companies means a company which has not filed its financial statements or annual returns as required under the Companies Act, 1956 or Companies Act, 201.3, as the case may be, and the Rules made thereunder for a continuous period of three years”.

Duration of Scheme:

The scheme shall come into force with effect from 01.01.2018 and shall remain in force up to 31..03.2018.

Reason to Introduce this Scheme:

MCA in September 2017, identified 3,09,614 directors associated with the companies that had failed to file financial statements or annual returns in the MCA21 online registry for a continuous period of three financial years 2013-14 to 2015-16 in terms of provisions of section 1.64(2) r /w 167(1)(a) of the Act and they were barred from accessing the online registry and a list of such directors was published on the website of MCA.

Whereas, as a result of above action, there have been a spate of representations from industry, defaulting companies and their directors seeking an opportunity for the defaulting companies to become compliant and normalize Operations.

Whereas, certain affected persons have also filed writ petitions before various High Courts seeking relief from the disqualification.

To Whom the Scheme is Applicable

This scheme is applicable to all defaulting companies (other than the companies which have been stuck off/ whose names have been removal from the register of companies under section 248(5) of the Act). A defaulting company is permitted to file its overdue documents which were due for filing till 30.06.2017 in accordance with the provisions of this Scheme.

Procedure of the Scheme:

In the case of defaulting companies whose names have not been removed from register of companies,-

  1. The DINs of the concerned disqualified directors de-activated at present, shall be temporarily activated during the validity of the scheme to enable them to file the overdue documents
  2. The defaulting company shall file the overdue documents in the respective prescribed eForms paying the statutory filing fee and additional fee payable as per section 403 of the Act read with Companies (Registration Offices and fee) Rules, 2014 for filing these overdue documents

overdue documents means the financial statements or the annual returns or other associated documents, as applicable, in the case of a defaulting company and refer to documents mentioned in paragraph 5 of the scheme”.

Overdue documents includes:

  1. Form Number 20B/MGT-7- Form for filing company having share capital.
  2. Form 21A/MGT-7- Particulars of Annual return not having share capital.
  • Form 23AC, 23ACA, 23AC-XBRL, 23ACA-XBRL, AOC-4, AOC-4(CFS), AOC (XBRL) and AOC-4(non-XBRL) - Forms for filing Balance Sheet/Financial Statement and profit and loss account.
  1. Form 66 - Form for submission of Compliance Certificate with the Registrar.
  2. Form 23B/ADT-1- Form for intimation for Appointment of Auditors.


  1. The defaulting company after filing documents under this scheme, shall seek condonation of delay by filing form e-CODS* attached to this scheme online on the MCA21 portal. The fee for filing application eform CODS is Rs.30,000/- (Rs. Thirty Thousand only)

* E-FORM CODS 2018, will be available from 20.02.2018 or other alternate date as may be prescribed by MCA

Note: Where a Company has been restored after an application to NCLT, DIN of Directors of such companies will also be re-activated.

The Registrar concerned shall withdraw the prosecution(s) pending if any before the concerned Court(s) for all documents filed under the scheme. However, this scheme is without prejudice to action under section 167(2) of the Act or civil and criminal liabilities, if any, of such disqualified directors during the period they remained disqualified.

  1. The DINs of the Directors associated with the defaulting companies that have not filed their overdue documents and the eform CODS, and these are not taken on record in the MCA21 registry and are still found to be disqualified on the conclusion of the scheme in terms of section 164(2)(a) r/w 167(1)(a) of the Act shall be liable to be deactivated on expiry of the scheme period.
  2. In the event of defaulting companies whose names have been removed from the register of companies under section 248 of the Act and which have filed applications for revival under section 252 of the Act up to the date of this scheme, the Director's DIN shall be re-activated only NCLT order of revival subject to the company having filing of all overdue documents. 

Power of ROC:

At the conclusion of the Scheme, the Registrar shall take al1 necessary actions under the Companies Act, 1956 / 2013 against the companies who have not availed themselves of this Scheme and continue to be in default in filing the overdue documents. 

Click here  to file your Company financial statement and annual return with the Registrar and to fill the form e-CODE 2018.

Encl: FORM-e-CODS 2018.

By, CS Madhu Kotwani