Lok Sabha
The Government has launched prosecutions against 109 vanishing companies and their directors. This follows efforts made by the Task Forces set up for the purpose. The Minister for Company Affairs, Shri Prem Chand Gupta, told the Lok Sabha in a written reply today that prosecutions have also been initiated against 103 companies and their directors for non-filing of statutory returns under the relevant sections of the Company Act, 1956. First information reports have been filed with the police against 87 companies and their directors for offences punishable under Sections 420, 406, 403, 415, 418 and 424 of the Indian Panel Code.
The Coordination and Monitoring Committee (CMC) on vanishing companies, co-chaired by the Secretary, Ministry of Company Affairs and Chairman, Securities & Exchange Board of India (SEBI) had set up four Task Forces for taking legal action against vanishing companies. These Task Forces are headed by the four Regional Directors of the Ministry of Company Affairs. The meetings of these Task Forces take place in Mumbai, Kolkata, Chennai and Delhi. The other members of these Task Forces are the representatives of Regional Offices of SEBI, relevant stock exchanges and the concerned Registrars of Companies, said the Minister.
(Release ID :3342)