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`Cos should utilise amnesty scheme'

Our Bureau

MADURAI, July 16

COMPANIES that have failed to file their balance sheet, profit and loss account, annual returns and other documents should avail the one-time opportunity provided under the Company Law Settlement Scheme (CLSS-2000) announced recently by the Ministry of L aw, Justice and Company Affairs to get immunity from prosecution and heavy fines, said, Mr. V.A. Vijayan Menon, Registrar of Companies, Tamil Nadu, here.

Addressing presspersons, Mr. Vijayan Menon said filing of these documents were mandatory. However, 60 per cent per cent of registered companies are not complying with this. In Tamil Nadu alone, there are more than 18,000 defaulters. According to law, the y are liable for prosecution.

Since confrontation may not promote healthy relationship, the Department of Company Affairs has come out with a settlement scheme to provide an one-time opportunity for such companies to comply with the law. Failure to submit such returns effected throug h legal process robbed investors of an opportunity to know about the performance and plan their activities. The scheme would be effective till August 31.

The scheme recognises two type of defaults, non-submission in terms of years and number of documents to be submitted. The lumpsum amount payable is decided accordingly. Failure to avail the opportunity could attract a payment of fine, ten times the amoun t payable, he warned. Under the scheme, if the documents were filed, violation of legal process would not be pressed, he added.

On the steps being taken by the department in respect of vanishing companies, he said such companies largely came under the category of non-banking finance companies, over which the department had no jurisdiction.

However, prosecution has been initiated against one company that came within the jurisdiction, he said. He further said that usually, the department published a list of defaulting companies for public knowledge and suitable action by public sector instit utions associated with such companies.