Ministry of Corporate Affairs has recently identified 309,614 directors who were associated with the defaulting companies that had failed to file financial statements or annual returns in MCA21 online registry for a continuous period of three financial years 2013-14 to 2015-16 in terms of the provisions of Section- 164(2) read with 167(1)(a) of the Companies Act, 2013. Such directors have been disqualified from becoming the Directors in any body corporate for 5 years.

Further, Ministry deactivated the DIN (Director Identification Number) of all such defaulting directors and debarred them from accessing the online registry.s

As a result of the such deactivation various petitions were filled with the various Courts/Tribunals for getting relief from the disqualification, and many representation came up from the defaulting companies and their directors for seeking an opportunity for the such companies to become compliant and normalize the operation.

In view of the same, Central Government has decided to give an opportunity to such defaulting companies, by introducing a Scheme namely "Condonation of Delay Scheme 2018"(CODS- 2018) vide Circular No. 16/2017 dated 29.12.2017.


The said scheme is applicable for a period of 3 months from 01.01.2018 till 31.03.2018. This scheme will be applicable for all those defaulting companies who have failed to file its Financial Statements or Annual Returns for a continuous period of three financial years or more and whose names are still active in the records of the Registrar of Companies.

It may be noted that the scheme is NOT applicable for those companies which have been struck off/whose names have been removed from the register of Registrar of Companies under section 248(5) of the Act.


1. The DIN of the disqualified directors associated with the defaulting companies but still active in the records which have been de-activated, will temporarily get activated during the such period mentioned in the scheme , i.e., 01.01.2018 till 31.03.2018 to file all the overdue statutory documents with the MCA Portal.

2. Once the DIN have been activated, the Companies shall file the overdue documents in the prescribe E-Forms applicable for the concerned documents by paying the normal filling fees along with the additional fees as applicable under the Act and Rules and Regulations made thereunder.

3. Once all the overdue documents have been filled with concerned RoC, the defaulting companies are required to get the Condonation of Delay done from the department by filling E-form e-CODS which shall be available online on the MCA Portal on or after 20.02.2018 as may be intimated by the ministry online. The fee for the said e-form is INR 30,000/- (INR Thirty Thousand Only).

4. After the filling of all the overdue documents and form e-CODS, the Registrar shall withdraw the prosecution pending if any, before the concerned Court(s) for all the documents filed under the scheme.

Documents on which CODS-2018 is applicable:

S. No. Form Purpose of Form
1 Form 20B/MGT-7 For filling Annual Return by a Company having share capital
2 21A/MGT-7 For filling Annual Return by a Company not having share capital
3 23AC, 23ACA, 23AC-XBRL, 23ACA-XBRL/AOC-4, AOC-(CFS), AOC-4(XBRL) For filling Balance Sheet/Financial Statements and Profit and Loss Account.
4 Form 66 For submission of Compliance Certificate.
5 Form 23B/ADT-1 For intimation for Appointment of Auditors.


1. Those directors whose are associated with the defaulting companies that have not availed the benefits of CODS-2018, such directors shall be treated as disqualified on the conclusion of the scheme u/s-164(2)(a) of the Act, the DIN of those directors shall be again deactivated on the expiry of the period of the scheme.

2. Those directors who are associated with the Strike-off companies u/s 248 of the Act, who have filled the application with the National Company Law Tribunal for the revival of such companies, the DIN of those directors shall be re-activated only by the order of the revival passed by the concerned NCLT. They cannot avail the benefit of the this Scheme.

3. Also it may be noted that, those companies who have not availed themselves of this Scheme and continue to be in default, the Registrar shall upon the conclusion of the said Scheme take all the necessary actions under the relevant provisions of the Act.