(a) whether the Government has received any complaints against certain companies which have misutilised loans
taken from Indian Financial Institutions and banks in the country;
(b) if so, the details thereof;
(c) whether the Government has taken any action against such companies; and
(d) if so, the details and outcome thereof?
MINISTER OF THE STATE IN THE MINISTRY OF COMPANY AFFAIRS
(SHRI PREM CHAND GUPTA)
(a) Yes, Sir.
(b) Industrial Finance Corporation of India (IFCI) had complained before the Company Law Board (CLB) against certain
companies alleging mis-utilisation of loans availed from the IFCI.
(c) & (d) On the complaint of IFCI, the CLB ordered investigation into the affairs of M/s Malvika Steels Ltd., M/s Koshika
Telecom Ltd. and M/s Usha India Ltd.
Separately, the allegations of mis-utilisation of funds availed, inter alia, from banks and financial institutions by
some of the companies belonging to the Ketan Parekh Group also came to the notice of the Government.
Investigations of the above companies, including 16 companies belonging to the Ketan Parekh Group (as per Annex), were
ordered to be carried out by officers drawn from Serious Fraud Investigation Office (SFIO), under the provisions of
the Companies Act, 1956.
In all the above cases, the relevant investigation reports have since been received and sanctions for prosecutions
under various provisions of the Companies Act, 1956 and Indian Penal Code have been accorded. SFIO has also filed
complaints in the matter before the appropriate courts.
In addition, the copies of the investigation reports have been forwarded by the Ministry of Company Affairs to SEBI,
CBI, Income Tax Department, Enforcement Directorate, Department of Banking, Ministry of Finance, RBI etc. as appropriate,
for action under their respective statutes.