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CS Executive · Setting Up of Business, Industrial and Labour Laws · Various Initial Registrations and Licenses

Rohan Foods LLP in Pune has an IEC but failed to update its IEC details during the prescribed annual period. What is the consequence under the DGFT procedure?

The IEC gets deactivated until the holder updates its details, after which it can be reactivated. Annual updating is mandatory under the DGFT procedure, so failure does not cancel the code permanently, nor does it attract Companies Act penalties.

  1. AThe IEC is permanently cancelled and cannot be revived
  2. BThe IEC is deactivated until the details are updated, and can be reactivated after updatingCorrect
  3. CThe LLP is automatically fined under the Companies Act
  4. DNothing happens as updating is optional

Explanation

IEC holders must confirm or update their details annually in the specified period. Failure leads to deactivation of the IEC, which is reactivated once the details are updated. It is not permanent cancellation, the Companies Act is irrelevant to an IEC, and updating is mandatory rather than optional.

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