FIR lodged against 87 'vanishing' companies
Union Minister of Corporate Affairs, Sachin Pilot Thursday said that till date, 87 companies are considered falling under the 'vanishing' category and the total amount of Public Issues made by these 87 companies amounted to Rs. 341.90 crore.
Pilot in a written reply to a question in the Lok Sabha said that the Ministry of Corporate Affairs had initially identified 238 companies as vanishing companies.
Out of these, names of 151 companies have since been deleted from the list as the companies started filing their Balance Sheets etc., with the Registrars of Companies as well as Stock Exchanges and the criteria for treating a company as 'vanishing' is no longer applicable to them.
Pilot said that FIRs have been lodged against all the 87 vanishing companies and their directors with the Police to trace their whereabouts and also to take action under Indian Penal Code (IPC).
Further, prosecutions have been filed against vanishing companies and their Directors under Sections 162 and 220 of the Companies Act, 1956 for non-filing of Statutory Returns and under Sections 62/63, 68 and 628 of the Companies Act, 1956 for mis-statement in the prospectus/fraudulently inducing persons to invest money/false statements made in the offer documents, etc.
Promoters/directors of the vanishing companies were also debarred by the Securities and Exchange Board of India (SEBI) from raising money from the public under Section 11B of the Securities and Exchange Board of India Act, the Minister informed.
Pilot further added that the government has constituted a Central Monitoring Committee and Regional Task Forces on vanishing companies to keep a check on such cases.
He said that the Inter-Ministerial Group will also frame clarificatory guidelines on how to distinguish between genuine direct sales from disguised money circulation Schemes.
Pilot also stated that the Competition Commission of India (CCI) is considering allegations of restrictive trade practices, collusive practices and violation of the provisions of the Competition Act, 2002 regarding anti-competitive agreements and abuse of dominant position against All India Motor Transport Congress.
Pilot said that as per Section 19 (1) of the Competition Act, 2002, no approval is required by CCI from the government to conduct any such enquiry.