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In olden days, when there was no online portal, lot of frauds cases were filed because many companies had appointed any random person as Director of their business without knowledge of that person. That’s bizarre but such was the system existed because there was no system of identification in the form of number or license issued to an individual to act as director, only KYC documents were required and we all know how flawed the of KYC documents are. Later on, it became extremely important for MCA (Ministry Of Corporate Affairs) to come up with the solution to reduce number of frauds happening because of fake director appointed on Board.
THE USE & EXPIRY
Any individual appointed for Director for first time needs to obtain DIN before placing his consent to the Board for his appointment as Director. DIN becomes his identification to act as Director in any Indian companies till the time DIN is not surrender or revoked.
Companues act 2013 and Secretarial Standards dictates that it is mandatory for a Director to mention his / her DIN whenever they sign any documents on behalf of the Company as a Director.
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What if someone obtain more than one DIN in his name can it be Surrendered ?
Yes, but HOW:
1) Its all digitized search on MCA website once you’re logged in. You can get the DIN info by searching with individuals name, you will get the details of number of DINs issued on particulars name.
2) Validate the same with the PAN card record. Only one DIN will be mapped to PAN card record rest will be duplicate.
3) check whether all the forms and documents of Company have original DIN.
Procedure to surrender DIN:
1) Director has make application with Form DIR 5.
2) Affidavit duly notarized stating that Director has never used the duplicate DIN when appointed as Director or to file any kind of forms.
3) DIR 5 will be attached in RD 1 along with PAN, passport, affidavit and CTC of Board Resolution.
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Even after complying with all the requirement of the form, RD (Regional Director) can still reject your application on the ground that the letter or show cause notice issued to the individual needs to be attached with all the forms. DIN cell of MCA sends this letter or show cause notice to individuals carrying more than 1 DIN.
It is not a mandatory attachment, but still one should never miss this.
Problem will come when individual know that he has more than one DIN and have not received any letter from DIN cell and still files surrender of DIN. Contact ROC with all the details of multiple DIN and ask them to send one letter to individual which can then be attached as attachment for the surrender of DIN.