Lok Sabha
At present 122 companies stand identified as vanishing companies. These companies had come out with public issues involving Rs.838 crores.
A Coordination and Monitoring Committee, co-chaired by Chairman, Securities and Exchange Board of India and Secretary, Ministry of Company Affairs has been set up for taking legal action against unscrupulous Promoters/Directors. Accordingly, action has been initiated against Promoters/Directors of the vanishing companies for violations under the Companies Act. Cases against several vanishing companies and their Promoters/Directors have also been registered with Police for offences punishable under Sections 420, 406, 403, 415, 418 and 424 of the Indian Penal Code.
This information was given to Lok Sabha on Friday by the Minister of Company Affairs, Shri Prem Chand Gupta in reply to a question by Smt. Minati Sen.
(Release ID :2439)