Central Scrutiny Centre (CSC) for carrying out scrutiny of MCA e-forms 

Ministry of Corporate affairs (MCA) has issued notification S.O. 1257(E) dated 18th March 2021. Vide notification S.O. 1257(E) MCA established a Central Scrutiny Centre (CSC) which will be located at the Indian Institute of Corporate Affairs (IICA), Plot No. 6, 7, 8, Sector 5, IMT Manesar, District Gurgaon (Haryana), Pin Code- 122050.

Straight Through Process (STP) – How It Works Now:

1. • The Ministry of Corporate Affairs (MCA) currently uses the STP mode to approve most e-forms filed by companies electronically, without human intervention. This speeds up the approval process but has a limitation: there’s no automatic mechanism to catch errors, omissions, or misstatements in these e-forms.
   • However, the Registrar of Companies (RoC) can still review any e-form at any time—either on their own initiative (suo-motu) or if they receive information or a complaint. If the RoC identifies defects or incompleteness, the e-form is marked as “defective.” Companies then have to refile the e-form from scratch, paying the applicable fee and additional late fees, as outlined in sub-rule 6 of Rule 10 of the Companies (Registration Offices and Fees) Rules, 2014.

Introduction of the Central Scrutiny Centre (CSC):

• • With the introduction of the CSC, there’s a significant shift. The CSC will now scrutinize e-forms filed under the STP process, checking for errors, omissions, or misstatements that the automated system might miss.
  • After scrutiny, the CSC will forward its findings to the concerned jurisdictional Registrar of Companies (RoC) for further action, as required under the Companies Act and its rules. This adds a layer of human oversight to ensure compliance and accuracy, reducing the risk of defective filings slipping through.

Even with the CSC in place, companies should review their e-forms carefully to minimize errors. Double check each form before final submission on MCA21 Portal.

Notification S.O. 1257(E) dated 18th March 2021.