Question : COMPLAINT REDRESSAL SYSTEM

(a) whether the Government is aware that the Delhi based headquarters of Registrar of Company and Company Affairs Department have received large number of complaints from share-holders and citizens that are yet to be redressed;

(b) if so, the details of the complaints pending, received and redressed during the last year and the current year;

(c) the reasons for slow redressal of complaints at New Delhi based Headquarters;

(d) whether the Government proposes to take any steps to simplify complaint redressal system for time-bound disposal of complaints; and

(e) if so, the details thereof ?

MINISTER OF THE STARTE IN THE MINISTRY OF COMPANY AFFAIRS (SHRI PREM CHAND GUPTA)

(a) The complaints by investors/ share holders in companies received at the Investor Protection Cell in the Ministry of Company Affairs and nominated nodal officers in each of the field offices of Regional Directors and Registrar of Companies (ROC) are taken up with the company in question for redressal and initiating legal action wherever warranted.

(b)During the year 2005-2006, 2440 complaints were received at ROC Delhi and Head Quarters of Ministry of Company Affairs, and all these complaints were processed and forwarded to the concerned companies for their speedy redressal and followed up by way of reminders wherever required. Of these 150 complaints were satisfactorily redressed by the companies. In the current year, of the 1640 complaints received, 1634 were immediately forwarded to the concerned companies for redressal.The companies have redressed 262 complaints. Six complaints are under process.

(c to e) The Government has taken following steps in this regard:-

(i)A system has been introduced to facilitate investors and depositors to lodge their complaints online, through the use of internet, with the Investor Protection Cell in the Ministry of Company Affairs, without having to send their grievances in writing through post.

(ii) The following websites have been sponsored and aided by the Ministry of Company Affairs under the Investor Education and Protection Fund (IEPF) :

(a)www.watchoutinvestors.com to inform investors about companies that have been indicted by various regulatory bodies for economic offences/ defaults etc. and

(b)www.investorhelpline.in to provide a mechanism for creating investor awareness and to assist investors in redressal of their grievances free of charge.