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DCA move to popularise amnesty scheme

Our Bureau

MUMBAI, July 5

THE Department of Company Affairs (DCA) is making ``all efforts to popularise the amnesty scheme offered'' to companies which have failed to file their balance sheets, profit and loss accounts, annual returns and other relevant documents with the Registr ar of Companies (RoC), the Regional Director (Western Region), DCA, Mr. Samir Biswas, told presspersons here.

The amnesty scheme, called Company Law Settlement Scheme 2000 (CLSS), was announced by the Government on May 15 in Parliament, and has been open since June 1. Under the scheme, companies which have delayed filing the relevant documents with the RoC get a one-time opportunity to settle their dues, including fine, at a substantial discount. CLSS grants such defaulting companies immunity from prosecution upon availing the scheme. It is open for a period of three months ending August 30.

Mr. Biswas said in the past month, about 400 companies availed CLSS. Though the response has been lukewarm till now he expected more defaulters to make use of the opportunity in the remaining two months.

According to RoC, Maharashtra, Mr. K. Pandian, if the defaulting companies fail to avail this one-time opportunity, ``they would have to face prosecution and stringent penalties''. He said the names of the defaulters would also be put up on DCA's Web sit e.

Mr. Biswas stated that the department expected to collect about Rs. 100 crores through the scheme, and added that the proceedings would be utilised to modernise and computerise the RoC offices.

He said on an all-India basis there were about 5,50,000 companies registered with the RoC, of which, nearly 2,30,000 were defaulters in filing the relevant documents. In the western region alone there were about 75,000 defaulters.