Prosecution against 142 vanishing cos.

By Our Legal Correspondent

NEW DELHI, AUG. 9. The Department of Company Affairs (DCA) has launched prosecution against 142 companies that had vanished after siphoning off Rs. 668.61 crores which the investors had deposited.

Out of these companies, 24 are not traceable even after due enquiries and complaints have been filed against them and their directors with police. The total amount involved in these 24 companies is Rs. 80.47 crores.

In respect of the remaining companies, prosecution had been launched by the field offices of the DCA. They have been instructed to refer these companies to regional economic intelligence agencies. The DCA has also written to the chief secretaries and finance secretaries of the States concerned for taking penal action against these companies under the Investors Protection Act and/or the Indian Penal Code.

Of the 24 companies that could not be traced, five are in Tamil Nadu, three in Gujarat, six in Madhya Pradesh, eight in the National Capital Territory of Delhi and two in Orissa. The five companies in Tamil Nadu are: Global Blooms (India), Navakkarai Spinners, Pappilon Exports, Shyam Prints and Publishers and Amigo Exports.

The Government has decided to delist these 24 companies while a multi-pronged action has been initiated against other such companies that have been tracked but otherwise are defaulting on account of not filing their annual returns as also for cheating the investors. They are being dealt with under the Companies Act, the Reserve Bank of India Act and the Security and Exchange Board of India Act.

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Section  : Business
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