Frauds, non-compliance of rules and more - Know what action Modi Govt has taken against erring companies

The Ministry of Corporate Affairs (MCA) has ordered investigations in 59 cases related to serious fraud during 2018-19 and 2019-20, while ordering investigations in 210 other cases, as per a government release quoting Union Minister of State for Finance and Corporate Affairs Anurag Thakur. 

MCA has also initiated enquiries in 878 cases during this period while ordering inspections against the companies in 674 case, the Minister informed the Lok Sabha in a written reply.   

Thakur said that the reasons for ordering inquiries, inspections and investigations varied and included cases of frauds, non-compliance of the provisions of the Companies Act, non-refund of deposit received from public under the Companies Act and complaints received from other Ministries. 

The MCA either directly or through Regional Directors (RDs)/ Registrar of Companies (ROCs) received complaints against companies from public (Individual/entities), from other Ministries etc, the release said. 

The actions were taken as per the provisions of the Companies Act, 2013 which included ordering and conducting inquiries, inspections or Investigations in terms of section 206(1),(4),(5), section 210 and section 212 of the Companies Act, 2013 respectively, the release further said. 

The government assigned those cases to the Serious Fraud Investigation Office (SFIO) where fraudulent activities were reported and required multi-disciplinary action. MCA assigns those cases to SFIO where large public interest and huge money transactions are involved.

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Enquiry has been conducted in 660 cases, the release said. Based on the findings, prosecutions are filed under the provisions of the Companies Act, 2013, the release said quoting the Minister.