(a) whether a Central Coordination and Monitoring Committee has been constituted to look into the issues relating to vanishing companies and their promoters and to monitor the progress of action against them;
(b) if so, the number of such companies and promoters against whom action has been taken so far; and
(c) the amount of recovery made from them till date?
MINISTER OF THE STARTE IN THE MINISTRY OF COMPANY AFFAIRS (SHRI PREM CHAND GUPTA)
(a) Yes Sir.
(b) Government has taken the following action against companies identified as
vanishing and their Promoters/Directors:
(i) filing of FIRs in respect of 102 companies and their Promoters/ Directors for the
offences punishable under Sections 420,406, 403, 415, 418 & 424 of the Indian Penal
Code (IPC).
(ii) filing of prosecutions under provisions of the Companies Act, 1956 in respect of 107
out of a total of 114 companies, which remain identified as vanishing companies as on date.
(iii) SEBI has debarred 100 companies and 378 directors u/s 11B of the SEBI Act from raising
money from the Capital Market in any form, for a period of five years.
(c)Besides taking action as stated above, Petitions have also been filed with the Company
Law Board (CLB) under Sections 397/398/402/408 read with Section 406 of the Companies
Act, 1956 in respect of two selected Vanishing Companies to disgorge the properties/monies
obtained by Promoters/Directors of these two Vanishing Companies. The Company Law
Board has dismissed the Petition in case of M/s. Nuline Glassware (India) Ltd (presently
known as M/s. Pur Opale Creations Ltd.) against which the Ministry has filed an appeal
before the Gujarat High Court. The other case of M/s AVI Industries Ltd is pending
adjudication by the CLB.