Delhi High Court Stays MCA Penalty Orders Against Microsoft CEO Satya Nadella, LinkedIn

The Delhi High Court recently stayed orders imposing penalties on Microsoft CEO Satya Nadella, LinkedIn chief executive Ryan Roslansky, LinkedIn Technology Information Pvt. Ltd., and several of its current and former directors over alleged violations of significant beneficial ownership disclosure norms under company law.

A Bench of Justice Anish Dayal issued notice in the matter and stayed the impugned orders till the next date of hearing. “Having appreciated the submissions advanced on behalf of petitioners, and there being no instructions on behalf of the respondents, this Court deems it fit to stay the operation of the impugned orders till the next date of hearing. List on 06th October 2026,” the Court said.

The writ petition challenges the Ministry of Corporate Affairs Regional Director (Northern Region)'s February 27, 2026 order dismissing an appeal against the Registrar of Companies' May 22, 2024 penalty order.

The Ministry of Corporate Affairs had imposed penalties totalling ₹27.1 lakh on Microsoft-owned LinkedIn India, Nadella, Roslansky and seven others for alleged violations of the significant beneficial ownership disclosure framework.

The penalties were imposed under Sections 89 and 90 of the Companies Act, which deal with declarations and disclosures relating to beneficial interest in shares and significant beneficial ownership.

Senior Advocate Gopal Subramanium, appearing for the petitioners, argued that the declarations required under Indian law had already been filed on January 29, 2024.

He contended that the Registrar of Companies had exceeded the scope of the law by relying on disclosures made before the United States Securities and Exchange Commission by Microsoft's chief executive. He argued that those disclosure obligations were distinct from the Indian significant beneficial ownership framework.

The petitioners also argued that the Registrar had wrongly roped in all petitioners in the penalty proceedings despite there being no occasion for them to make declarations under the law.

The Registrar's order was challenged before the MCA Regional Director, which dismissed the appeal on February 27, 2026.