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1.  DIR 3 KYC – A Non-productive work

For filing DIR 3 KYC, we need:

1.  DIN

2.  PAN &

3.  DSC (which now requires Video confirmation)

For obtaining DIN, the Director has already filed Form DIR-3 or Form SPICe (INC-32), which is duly processed by, Ministry of Corporate Affairs, and DIN is allotted. Without having PAN, DIN will not be allotted.

The new rule for obtaining DSC is to also have a Video confirmation by the applicant recorded at the time of upload of the DSC Application.

Which means that all the necessary id proofs and address proofs are already been submitted and verified for 3 times. Now one more MANDATORY document !

Is it possible to get DIN allotted without the necessary KYC ?

KYC is inbuilt in each of the above three. But, still, this new document is required.

Why unnecessary waste of time, money and resources ?

This entire activity is pointless. A sheer National Waste.


2. DUE DATE ENDED ON 15.09.2018

The due date for filing of DIR 3 KYC  ended on 15.09.2018.

The businessmen are already burdened with matters relating to implementation of GST and are worried because of the problems faced at GST Portal. Last date for filing of income tax returns is fast approaching for which GST input and turnover reconciliations are eating away the entire time. AGM due dates are fast approaching.

All professionals are completely busy in activities driven by the various deadlines.

At this stage, the KYC norms are made mandatory. This is nothing but rubbing salt in the wound.

 First of all, the Directors need to be individually informed and personally educated about the new norm and this has to be done by the concerned professional only.

The Professionals are required to certify that the mobile number and email id belong to the applicant.

In case of Pre-paid Mobile connections, it is very difficult to get the confirmation of Mobile number in the name of the applicant. In many cases, phone connections are taken in one persons’ name in the family and assigned to different family members. Many do not have email id’s and the certifying professionals are asking the applicants to create an email id .

If the DIN holder is non-resident, foreign address and foreign number shall only be allowed, and, if he is residing outside India the particulars have to be verified from the documents duly attested by the attesting authority as prescribed. This is an added time-consuming complication.

All these are practical difficulties that are faced by the certifying professionals and the work is getting postponed for one reason or the other.

Do the officials sitting in the AC Chambers understand all these ground realities before deciding on the Due date?

The estimated number of active directors was around 33 lakhs and the time given to comply was too short.

Does the Officials at the MCA think that the Directors and the professionals do not have any other work but to do KYC related compliance?

Does they think that they will set aside all other legitimate works and start focussing on KYC norms?

Why such an urgency for a relatively unimportant work?

Is this so crucial a process to warrant deactivation of DIN?



The following is the text extracted from the Home page of MCA portal :

 “The process of deactivating the non-compliant DINs is in progress and is likely to be completed by 17th September 2018. Please note that the form DIR-3 KYC will not be available for filing during the pendency of this activity (from 16th September 2018
to 17th September 2018).”

The FAQ on DIR-3 states as follows:

“Form DIR-3 KYC can be filed for status ‘Deactivated’ on payment of fee of Rs. 5000 only if the DIN was deactivated due to non-filing of form DIR-3 KYC.”

Which means, from 16.09.2018 & onwards, a mandatory fine of Rs.5000/- would be levied.

This is outrageous.

The penalty of Rs.5000/- is not only arbitrarily fixed but also whimsical. In no stretch of imagination such a huge fine could be justified.

All the directors are required to obtain a DSC and because of the excess load all the DSC servers were down.

MCA portal was not working properly, OTPs were not getting generated or uploads were not happening . When this is the situation , how can the MCA decided that a particular Director is a non-compliant Director and deactivate his DIN?

Why should they start deactivation so early?



In view of all the grounds stated above, it is requested to extend the normal due date till 31.03.2019, giving sufficient time for all the concerned persons to comply with the mandatory norms.

Otherwise, it will be totally unjust and unfair.