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Airfloa Rail Technology has received an adjudication order from the Registrar of Companies (RoC), Chennai, dated January 7, 2026, for failing to transfer its unspent Corporate Social Responsibility (CSR) obligation on time for financial year 2021-22. Under this order, a penalty of Rs. 27,12,722 has been imposed on the company, along with Rs. 2,00,000 each on two directors — Dakshinamoorthy Venkatesan and Dakshna Moorthy Manikandan — as officers in default. The total penalty comes to about Rs. 31.12 lakh and must be paid within 90 days. The company has stated that since it had already transferred the CSR amount (albeit belatedly) and had filed the suo moto application voluntarily, it considers the maximum penalty as unjustified. It plans to file an appeal with the Regional Director seeking waiver or reduction of the penalty under Section 441 of the Companies Act, 2013.
If the penalty stands after appeal, the company will need to absorb a one-time hit of around Rs. 31 lakh, which the company itself says will affect profitability. The quantum is not material relative to typical business operations, but it adds uncertainty until the appeal outcome and flags past governance gaps in CSR compliance.