MCA’s new tracing mechanism

E-Show cause – E-Reply: MCA’s new tracing mechanism

Artificial Intelligence Mechanism took very crucial part in everyone life so directly took part in working of departments too. Ministry of Corporate Affairs (MCA) introduced the concept of Compliance Monitoring System (MCA-CMS) on the MCA 21 portal for easy and simple compliance procedure.

What is MCA-CMS?

It is a mechanism introduced by Ministry of Corporate Affairs with the help of Artificial Intelligence (AI). This mechanism allows MCA to send or issue notice (SCN) to defaulting companies through online mode and they need to reply for SCN with the help of MCA-CMS.

How will MCA-CMS works like?

On the registered email id of the defaulting company will receive the SCN that is issued by the MCA-CMS. The SCN issued have the CMS reference number in the following manner:

F.No. C/RCXXX/XXX/2019/XX/XX-XX

In the issued notice MCA will mention the details of non-compliance including applicable provision of the Companies act, 2013 due to which SCN has been issued and also mentioned the timeline to reply.

What should company do on receiving a SCN ?

Company shall provide the copy of the SCN to all the Director and KMP (Key Managerial Personnel’s) of the Company on the immediate note from the date of notice received.

Thereafter Company prepares the reply of Show Cause Notice and filed along with the evidence within the timeline define via SCN.  If the company will not reply within the timeline that it will assumed no explanation to offer.

Procedure to file the reply to show cause notice on MCA-CMS

  1. Via www.mcacms.gov.in after that clicking on the link named reply to show cause notice.
  2. By clicking the provisions under which SCN have been issued.
  3. Mention the CMS reference no. that is on SCN.
  4. After validation of CMS reference no. then person request for OTP via clicking the tab and OTP will provided on registered email id.
  5. Then the person will able to reply the SCN.
  6. Maximum 480 words can be used for reply or attached 2 PDF (Max 50 MB ).
  7. Click on the submit button once the reply is complete.
  8. Confirmation message will be received.
  9. After submission of reply cannot be altered.

Conclusion: MCA-21 was one of the first e-governance initiatives from the Government of India implemented way back in 2006. MCA21 has gone through various changes during the last 13years. CMS mechanism is the wonderful as it liberals the time and cost both of every stakeholder involved.

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09 May

Jagriti  Mehndiratta
CS Jagriti Mehndiratta

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