Drastic action against promoters of vanishing companies

for Ministry of Company Affairs | Date - 02-05-2005

Altogether 21 directors / promoters of the vanishing companies have been arrested during 2004 – 05, all in Gujarat. Two promoters/directors of such companies were taken into custody today. This came out at a meeting of the Monitoring Committee chaired by the Secretary, Ministry of Company Affairs, here today. The meeting was attended by the Chairman, SEBI and representatives of the Governments of Gujarat, Andhra Pradesh, Tamil Nadu and Delhi. The four Regional Directors of the Ministry of Company Affairs were also present.

The Committee appreciated the progress in some States in registering FIRs against the vanishing companies and their promoters / directors. It emerged during the review that FIRs have now been registered against 86 companies and their promoters / directors out of a total of 100 FIRs filed so far. The meeting found the performance of the Gujarat Government in this regard commendable. The State police has registered FIRs in all the 27 cases filed with them and the investigations are progressing satisfactorily. The State has taken concrete action in tracing and arresting the promoters / directors in respect of seven vanished companies.

The meeting decided that each State Government may notify one nodal officer at a senior level to follow up the cases under investigation.

The Minister of Company Affairs, Shri Prem Chand Gupta, has reiterated his appeal to all the investors to file their specific complaints with the Registrars of Companies to book the offenders. They should not go scot-free for want of evidence, he said.

(Release ID :8947)

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