(a) whether his Ministry is aware of the investigation
by the Department of Company affairs U/s 209A and the
subsequent Income-Tax Investigation into violation of
Companies Act, 1956 and tax evasion committed by Sunair
Hotels Limited which inter-alia includes questionable
allotment of shares worth Rs. 31.75 crores to itself and
its subsidiaries; and
(b) if so, the action taken by the Government in this
regard ?
MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI GINGEE N. RAMACHANDRAN).
(a): Yes, Sir.
(b) : Department of Company Affairs launched prosecutions
against M/s Sunair Hotel Ltd. and its officers for violation
of Sections 77, 211 and 212 of the Companies Act, 1956. The
offences under Section 211 and 212 were however compounded by
the Company Law Board on application of the Company.
Prosecution for violation of Section 77 is still pending in
the Court of Additional Chief Metropolitan Magistrate.
Further, for violation of the provisions of Section 299 of
the Act, the Directors of the Company moved an application
u/s 621A of the Act for compounding of the offence and same
has also been compounded by the Company Law Board.
There was a search by the Income Tax Department in
the case of M/s Sunair Hotel Ltd. on 21.11.2000. Assessment
of undisclosed income in a search case is made within two
years from the end of the month in which search was conducted.
Investigation carried out by other agencies is also examined
from tax angle while making the assessment.