Serious Ltd is a listed company with a turnover of ₹75 crore as per last year's balance sheet. Company was facing investigation under section 210(1) wherein government issued orders requiring the company to deposit secur

Section 214 of the Companies Act, 2013 provides that where an investigation is ordered by the Central Government under section 210(1)(b) or pursuant to Tribunal's order under section 213, then before appointing an Inspector, the Central Government may require the applicants to give a security not exceeding ₹25,000 towards the costs and expenses of investigation as per the following criteria - S. No. Turnover (₹) as per previous year Amount of security balance sheet (₹) 1 Turnover up to ₹50 crore ₹10,000 2 Turnover more than ₹50 crore and up to ₹200 crore ₹15,000 3 Turnover more than ₹200 crore ₹25,000 The security shall be refunded to the applicant of investigation results in prosecution. In the present case, the appropriate amount according to the turnover of company which is ₹75 crores should be ₹15,000. Accordingly the order of the government requiring the company to deposit security of ₹30,000 towards expenses of investigation is wrong and even the deposit made by Mr. Happy of ₹10,000 is insufficient. Hence, the Company must deposit additional ₹5000 for complete compliance to Section 214.