Key Quantitative Figures

The Regional Director's orders, dated 13/07/2026, enhanced the total penalty imposed on the company for four financial years. The revised penalties are as follows:

  • Financial Year 2019-20: Company Penalty: ₹34,54,686; Director Penalty: ₹1,72,734 each.
  • Financial Year 2020-21: Company Penalty: ₹51,99,262; Director Penalty: ₹2,00,000 each.
  • Financial Year 2021-22: Company Penalty: ₹54,25,444; Director Penalty: ₹2,00,000 each.
  • Financial Year 2022-23: Company Penalty: ₹39,28,544; Director Penalty: ₹1,96,427 each.

Total Enhanced Company Penalty: ₹1,80,07,936

Dates of Action

  • Date of RD Order: 13/07/2026.
  • Date of Receipt of Communication: 13/07/2026.
  • Date of Disclosure to Exchange: 18/07/2026.

Parties Involved

  • Issuing Authority: Regional Director (RD), Southern Region, Chennai.
  • Appellant: Airfloa Rail Technology Limited and its Directors.
  • Original Adjudicating Authority: Registrar of Companies (ROC), Chennai.
  • Stock Exchange: BSE Limited.
  • Company Representative: Haraprasad Rout, Company Secretary and Compliance Officer.

Purpose and Details of Violation

The appeals were filed by the company and its directors under Section 454(5) of the Companies Act, 2013, challenging earlier orders from the ROC. The violation pertains to delays in transferring unspent CSR amounts to funds specified under Schedule VII of the Companies Act for the financial years 2019-20, 2020-21, 2021-22, and 2022-23.

The Regional Director dismissed the appeals and enhanced the penalty imposed on the company to twice the unspent CSR amount for each respective financial year, thereby modifying the original ROC orders.

Financial Impact

As explicitly disclosed, in the absence of the company successfully obtaining a legal remedy that nullifies or reduces the imposed penalty, the company's profitability will be affected to the extent of the final penalty amount paid after exhausting all available legal remedies.

Forward-Looking Statement / Management Commentary

The company is evaluating the legal remedies available under the applicable provisions of law to mitigate the effect of the orders passed by the RD. It states that appropriate action will be taken based on legal advice, and any material developments will be intimated to the stock exchange under the relevant provisions of the listing regulations.