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DCA initiates action against 93 vanishing cos

Our Bureau

NEW DELHI, Sept. 18

THE Department of Company Affairs (DCA) has initiated action against 93 companies, out of the 142 identified vanishing companies whose list has been provided by the Securities and Exchange Board of India (SEBI), under the Companies Act, 1956.

An official release from DCA said that the list of 142 companies received from SEBI comprises names of companies involved in various businesses other than plantation, non-banking financial services and software. The total amount involved in these compani es is Rs 668.61 crores.

Out of the 93 companies, 24 companies are ``non-traceable'' even after the inquiries. Instructions have been issued to the field organisations to initiate winding up proceedings under Section 433 and 439 of the Companies Act, 1956 against these 24 compan ies. The amount realised by the liquidator from the assets of these companies would be utilised for payment to investors as per court's orders under the Companies Act, the DCA statement said.

It also said that no prosecution has been initiated against 37 companies, out of the 142 vanishing companies, which are regular in filing their statutory documents such as balance sheet and annual returns.

While eight companies are under liquidation, the assets of three companies have been taken over by the State Governments of Punjab and Karnataka. One company is under reference to the Board for Industrial and Financial Reconstruction (BIFR).