No penalty for non-filing Form “CAR” to confirm Readiness towards COVID-19

The Ministry of Corporate Affairs in its earlier advisory has issued preventive measures to contain the spread of COVID-19 by deploying “Company Affirmation of Readiness towards COVID-19 (CAR)”, web-based form on 23rd March 2020 to ensure that “work from home” policy is followed by all the LLPs and Companies to show their readiness to fight COVID-19.

Further on 23rd March 2020, the Ministry has issued certain clarification on web form CAR. The web Form has been deployed as a purely confidence-building measure to assess the readiness of the companies to deal with COVID-19 Threats in India. As such no penalty or enforcement-related action is applicable.

It is a purely voluntary part of our contribution to join the movement to fight against the spread of the disease. Since the portal may experience heavy load, it would indicate ‘Busy’ alert whenever peak traffic is reached.

If any Corporate has offered work from home for employees wherever it is possible and has made other alternate arrangements to ensure the safety, security and minimum physical interaction of the other staff, the said Corporate may file “Yes” in the CAR form to report preparedness to tackle COVID-19 pandemic.

Click here to read the Notification.

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