Lok Sabha Question No. 2091 (UNSTARRED), answered on 2017-07-28
Subject: MRAU
Ministry: CORPORATE AFFAIRS
Asked by: MEENAKASHI LEKHI, RAGHAV LAKHANPAL

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

LOK SABHA UNSTARRED QUESTION NO. 2091 ANSWERED ON FRIDAY, THE 28TH JULY, 2017 [SHRAVANA 06, 1939 (SAKA)]

MRAU

QUESTION

2091. SHRIMATI MEENAKASHI LEKHI: SHRI RAGHAV LAKHANPAL:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether the Market Research and Analysis Unit (MRAU) is operational in the Serious Fraud Investigation Office (SFIO) and if so, the details along with its objectives thereof;
- (b) the number of cases of serious frauds unravelled by MRAU since last two years including the cases of corporate houses reported for fudging of accounts and financial resources; and
- (c) the details of punishment/penalty imposed on the corporate houses during the said period?

ANSWER

THE MINISTER OF STATE IN THE                  (SHRI ARJUN RAM MEGHWAL) MINISTRY OF CORPORATE AFFAIRS

(a): Yes, Madam. Market Research and Analysis Unit (MRAU) was set up in SFIO in 2009 inter-alia, with the following objectives:

- i) To act as Repository of Information;

- ii) For improving investigation skills;

- iii) For providing inputs for adopting best international practices; and

- iv) For co-ordination with other investigating agencies.

(b): During the last two years, MRAU has submitted 28 Research Reports based on which investigations were assigned to SFIO in respect of 18 companies.

- (c):    The list of punishment/penalty imposed by the Courts in the last two years is at Annexure-I.

*******

## Annexure-I

## ANNEXURE REFERRED TO IN REPLY TO PART (c) OF THE UNSTARRED QUESTION NO. 2091 FOR ANSWER IN LOK SABHA ON 28.07.2017.

## Details of convictions for the last two years i.e. 2015-16 and 2016-17

|   Sl. No | Name of the Company     | Date of order of Investig ation   | Date of submission of final/ Supplemen tary report.   | Date of issuance of Instructio n by MCA for filing of prosecuti on.   | Court Case No.   | Cause title of the case                  | Filed U/s.   | Date of filing of Prosecu tion   | Name & Address of the Court   | Date of Conviction and who are have been convicted.                     | Financ ial Year of Punish ment   |
|----------|-------------------------|-----------------------------------|-------------------------------------------------------|-----------------------------------------------------------------------|------------------|------------------------------------------|--------------|----------------------------------|-------------------------------|-------------------------------------------------------------------------|----------------------------------|
|        1 | Design Auto Systems Ltd | 16.12.20 03                       | 19.01.2005                                            | 06.06.20 05                                                           | 34/05            | SFIO v/s Design Auto Systems Ltd& Others | 77 (4)       | 04.07.20 05                      | ACJM, Indore                  | A3 convicted on 26.04.2016 and imposed fine for fine of Rs. 10 thousand | 2016- 17                         |
|        2 | Informatio n Technologi | 14.10.20 05                       | 03.09.2010                                            | 10.03.20 11                                                           | 4002/3           | SFIO Vs R P Sharma & Ors                 | 240(3)       | 12.01.20 11                      | ACMM (Spl. Acts) Tis Hazari   | All the accused person have been convicted on 22.02.2016 and            | 2015- 16                         |

|    | es India Limited                                                           | fresh order   |                        |           |     |             | Court, Delhi                                 | each one fined with Rs. 10000/- each and sentenced till rising of the court further Court directed the convict to pay Rs 2000/- each to be paid to the complainant as cost.   |          |
|----|----------------------------------------------------------------------------|---------------|------------------------|-----------|-----|-------------|----------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|  3 | Goldquest Internatio nal Pvt. Ltd. & Questnet Enterprise s India Pvt. Ltd. | 28.07.20 10   | 05.03.2012 08.01.20 13 | 243/20 13 | 143 | 22.11.20 13 | Special Court for Economic ofences Hyderabad | The accused has been convicted on 11.01.2016 and each one fine Rs. 5000/-. 50% of the fine is to be given to the complainant being cost of the proceedings                    | 2015- 16 |
|  4 | Goldquest Internation al Pvt. Ltd. &Questnet Enterprise s India Pvt. Ltd.  | 28.07.20 10   | 05.03.2012 08.01.20 13 | 244/20 13 | 146 | 22.11.20 13 | ACMM, EO-I, Egmore Chennai                   | All the accused person have been convicted on 11.01.2016 and each one fined with Rs. 19940/- each (total Rs.59820/-) and 50% of the fine is to be given to the                | 2015- 16 |

|    |                                                                            |             |            |             |           |     |             |                            | complainant being cost of the proceedings.                                                                                                                                                                |          |
|----|----------------------------------------------------------------------------|-------------|------------|-------------|-----------|-----|-------------|----------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|  5 | Goldquest Internation al Pvt. Ltd. & Questnet Enterprise s India Pvt. Ltd. | 28.07.20 10 | 05.03.2012 | 08.01.20 13 | 245/20 13 | 151 | 22.11.20 13 | ACMM, EO-I, Egmore Chennai | All the accused person have been convicted on 11.01.2016 and each one fined with Rs. 500/- each (total Rs.1500/-) and 50% of the fine is to be given to the complainant being cost of the proceedings.    | 2015- 16 |
|  6 | Goldquest Internatio nal Pvt. Ltd. & Questnet Enterprise s India Pvt. Ltd. | 28.07.20 10 | 05.03.2012 | 08.01.20 13 | 246/20 13 | 303 | 22.11.20 13 | ACMM, EO-I, Egmore Chennai | All the accused person have been convicted on 11.01.2016 and each one fined with Rs. 19940/- each (total Rs.59820/-) and 50% of the fine is to be given to the complainant being cost of the proceedings. | 2015- 16 |
|  7 | Goldquest Internatio nal Pvt.                                              | 28.07.20 10 | 05.03.2012 | 08.01.20 13 | 247/20 13 | 193 | 22.11.20 13 | ACMM, EO-I,                | All the accused person have been convicted on                                                                                                                                                             | 2015- 16 |

|    | Ltd. & Questnet Enterprise s India Pvt. Ltd.                               |             |            |             |                                     |                     |        |             | Egmore Chennai                           | 11.01.2016 and each one fined with Rs. 500/- each (total Rs.1500/-) and 50% of the fine is to be given to the complainant being cost of the proceedings.    |          |
|----|----------------------------------------------------------------------------|-------------|------------|-------------|-------------------------------------|---------------------|--------|-------------|------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
|  8 | Goldquest Internatio nal Pvt. Ltd. & Questnet Enterprise s India Pvt. Ltd. | 28.07.20 10 | 05.03.2012 | 08.01.20 13 | 248/20 13                           |                     | 209    | 22.11.20 13 | ACMM, EO-I, Egmore Chennai               | The accused has been convicted on 11.01.2016 and each one fine Rs. 10000/-. 50% of the fine is to be given to the complainant being cost of the proceedings | 2015- 16 |
|  9 | Gennext Promoters Pvt Ltd                                                  | 30.08.20 12 | 13.12.2012 | 07.03.20 13 | 15/3 of 2014                        | SFIO vs Chhavi Garg | 227(2) | 28.02.20 14 | ACMM (Spl. Acts) Tis Hazari Court, Delhi | All accused Convicted on 27.06.2016 with fine of Rs.10000/-                                                                                                 | 2016- 17 |
| 10 | Gennext Promoters Pvt Ltd                                                  | 30.08.20 12 | 13.12.2012 | 07.03.20 13 | 16/3 of 2014 SFIO Pankaj Madan Anr. | vs &                | 628    | 28.02.20 14 | ACMM (Spl. Acts) Tis Hazari Court, Delhi | All accused Convicted on 27.06.2016 with fine of Rs.25000/-                                                                                                 | 2016- 17 |

|   11. | Gennext Promoters Pvt Ltd   | 30.08.20 12   | 13.12.2012             | 07.03.20 13   | 17/3 of 2014                       | SFIO vs Pankaj Madan & Anr.        | 211(7) r/w 211(1)   | 28.02.20 14   | ACMM (Spl. Acts) Tis Hazari Court, Delhi   | All accused Convicted on 27.06.2016 with fine of Rs.15000/-   | 2016- 17   |
|-------|-----------------------------|---------------|------------------------|---------------|------------------------------------|------------------------------------|---------------------|---------------|--------------------------------------------|---------------------------------------------------------------|------------|
|    12 | Gennext Promoters Pvt Ltd   | 30.08.20 12   | 13.12.2012 07.03.20 13 | 18/3 of 2014  | SFIO Pankaj Madan Anr.             | vs &                               | 209(1)              | 28.02.20 14   | ACMM (Spl. Acts) Tis Hazari Court, Delhi   | All accused Convicted on 27.06.2016 with fine of Rs.15000/-   | 2016- 17   |
|    13 | Gennext Promoters Pvt Ltd   | 30.08.20 12   | 13.12.2012             | 07.03.20 13   | 25/3 of 2014                       | SFIO vs Gennext Promoters Pvt. Ltd | 165(5) r/w 163(1)   | 28.02.20 14   | ACMM (Spl. Acts) Tis Hazari Court, Delhi   | All accused Convicted on 27.06.2016 with fine of Rs.15000/-   | 2016- 17   |
|    14 | Gennext Promoters Pvt Ltd   | 30.08.20 12   | 13.12.2012 07.03.20 13 | 26/3 2014     | of SFIO Gennext Promoters Pvt. Ltd | vs                                 | 307(1)              | 28.02.20 14   | ACMM (Spl. Acts) Tis Hazari Court, Delhi   | All accused Convicted on 27.06.2016 with fine of Rs.15000/-   | 2016- 17   |
|    15 | Gennext Promoters Pvt Ltd   | 30.08.20 12   | 13.12.2012 07.03.20 13 | 27/3 2014     | of SFIO Gennext Pvt.               | vs Promoters Ltd                   | 193(6) r/w 193(1)   | 28.02.20 14   | ACMM (Spl. Acts) Tis Hazari Court, Delhi   | All accused Covicted on 27.06.2016 with fine of Rs.15000/-    | 2016- 17   |
|    16 | Gennext Promoters Pvt Ltd   | 30.08.20 12   | 13.12.2012 13          | 07.03.20      | 29/3 of 2014 SFIO                  | vs Gennext                         | 146(2)              | 28.02.20 14   | ACMM (Spl. Acts) Tis Hazari                | All accused Convicted on 27.06.2016                           | 2016- 17   |

|    |                                 |             |            |             |              | Promoters Pvt. Ltd                              |                   |             | Court, Delhi                             | with fine of Rs.15000/-                                     |          |
|----|---------------------------------|-------------|------------|-------------|--------------|-------------------------------------------------|-------------------|-------------|------------------------------------------|-------------------------------------------------------------|----------|
| 17 | Gennext Promoters Pvt Ltd       | 30.08.20 12 | 13.12.2012 | 07.03.20 13 | 30/3 of 2014 | SFIO vs Gennext Promoters Pvt. Ltd              | 303(3) r/w 303(1) | 28.02.20 14 | ACMM (Spl. Acts) Tis Hazari Court, Delhi | All accused Convicted on 27.06.2016 with fine of Rs.15000/- | 2016- 17 |
| 18 | Gennext Promoters Pvt Ltd       | 30.08.20 12 | 13.12.2012 | 07.03.20 13 | 31/3 of 2014 | SFIO vs Gennext Promoters Pvt. Ltd              | 150(1)            | 28.02.20 14 | ACMM (Spl. Acts) Tis Hazari Court, Delhi | All accused Convicted on 27.06.2016 with fine of Rs.15000/- | 2016- 17 |
| 19 | Gennext Trexim Services Pvt Ltd | 30.08.20 12 | 13.12.2012 | 07.03.20 13 | 19/3 of 2014 | SFIO vs Pankaj Madan & Anr.                     | 209(5) r/w 209(1) | 28.02.20 14 | ACMM (Spl. Acts) Tis Hazari Court, Delhi | All accused Convicted on 27.06.2016 with fine of Rs.15000/- | 2016- 17 |
| 20 | Gennext Trexim Services Pvt Ltd | 30.08.20 12 | 13.12.2012 | 07.03.20 13 | 20/3 of 2014 | SFIO vs Gennext Trexim Services Pvt. Ltd & Ors. | 307(8) r/w 307(1) | 28.02.20 14 | ACMM (Spl. Acts) Tis Hazari Court, Delhi | All accused Convicted on 27.06.2016 with fine of Rs.15000/- | 2016- 17 |
| 21 | Gennext Trexim Services Pvt Ltd | 30.08.20 12 | 13.12.2012 | 07.03.20 13 | 21/3 of 2014 | SFIO vs Gennext Trexim Services                 | 150(1)            | 28.02.20 14 | ACMM (Spl. Acts) Tis Hazari Court, Delhi | All accused Convicted on 27.06.2016 with fine of Rs.15000/- | 2016- 17 |

|    |                                 |             |            |             |              | Pvt. Ltd & Ors.                                 |                   |             |                                          |                                                             |          |
|----|---------------------------------|-------------|------------|-------------|--------------|-------------------------------------------------|-------------------|-------------|------------------------------------------|-------------------------------------------------------------|----------|
| 22 | Gennext Trexim Services Pvt Ltd | 30.08.20 12 | 13.12.2012 | 07.03.20 13 | 22/3 of 2014 | SFIO vs Gennext Trexim Services Pvt. Ltd & Ors. | 303(3) r/w 303(1) | 28.02.20 14 | ACMM (Spl. Acts) Tis Hazari Court, Delhi | All accused Convicted on 27.06.2016 with fine of Rs.15000/- | 2016- 17 |
| 23 | Gennext Trexim Services Pvt Ltd | 30.08.20 12 | 13.12.2012 | 07.03.20 13 | 23/3 of 2014 | SFIO vs Gennext Trexim Services Pvt. Ltd & Ors. | 146(4) r/w 146(2) | 28.02.20 14 | ACMM (Spl. Acts) Tis Hazari Court, Delhi | All accused Convicted on 27.06.2016 with fine of Rs.15000/- | 2016- 17 |
| 24 | Gennext Trexim Services Pvt Ltd | 30.08.20 12 | 13.12.2012 | 07.03.20 13 | 24/3 of 2014 | SFIO vs Gennext Trexim Services Pvt. Ltd & Ors. | 163(5) r/w 163(1) | 28.02.20 14 | ACMM (Spl. Acts) Tis Hazari Court, Delhi | All accused Convicted on 27.06.2016 with fine of Rs.15000/- | 2016- 17 |
| 25 | Gennext Trexim Services Pvt Ltd | 30.08.20 12 | 13.12.2012 | 07.03.20 13 | 28/3 of 2014 | SFIO vs Gennext Trexim Services Pvt. Ltd & Ors. | 193(6) r/w 193(1) | 28.02.20 14 | ACMM (Spl. Acts) Tis Hazari Court, Delhi | All accused Convicted on 27.06.2016 with fine of Rs.15000/- | 2016- 17 |

|   26. | Cogent Venture          | 21.10.20 09   | 16.12.2011   | 23.12.20 11   | Quash ed on 17.11. 2015                           | SFIO Shiv Bagla                     | Vs Kr 209A of CA 1956            | 16.04.20 13   | ACMM (Spl. Acts) Tis Hazari Court, Delhi   | Accused no 6 has been convicted and sentenced to TRC and fine of Rs. 50,000/- on 19.05.2016 and other Accused had already declared as PO.   | 2016- 17   |
|-------|-------------------------|---------------|--------------|---------------|---------------------------------------------------|-------------------------------------|----------------------------------|---------------|--------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|------------|
|    27 | Yusuf Properties P Ltd. | 17.05.20 12   | 30.08.2012   | 30.04.20 13   | 4/3/20 14 Ct. Case 52321 3/2016 P                 | SFIO v/s Yusuf Properties Ltd & ors | 159,16 6,210 & 220 (FY 2007- 08) | 30.01.20 14   | ACMM (Spl. Acts) Tis Hazari Court, Delhi   | Accused no 4 Sh. Upender singh convicted for fine of Rs. 10 thousand on 10.12.2015.                                                         | 2015- 16   |
|    28 | Yusuf Properties P Ltd. | 17.05.20 12   | 30.08.2012   | 30.04.20 13   | 7/3/20 14 Ct. Cases 52344 8/2016 P                | SFIO v/s Yusuf Properties Ltd & ors | 159,16 6,210 & 220 (FY 2008- 09) | 30.01.20 14   | ACMM (Spl. Acts) Tis Hazari Court, Delhi   | Accused no 4 Sh. Upender singh convicted for fine of Rs. 10 thousand on 10.12.2015.                                                         | 2015- 16   |
|    29 | Yusuf Properties P Ltd. | 17.05.20 12   | 30.08.2012   | 30.04.20 13   | 3/3/20 14 Ct. Cases 52173 7/2016 SFIO Yusuf P ors | v/s Properties Ltd &                | 159,16 6,210 & 220 (FY 2006- 7)  | 30.01.20 14   | ACMM (Spl. Acts) Tis Hazari Court, Delhi   | Accused no 4 Sh. Upender singh convicted for fine of Rs. 10 thousand on 10.12.2015.                                                         | 2015- 16   |

|   30. | Yusuf Properties P Ltd.   | 17.05.20 12   | 30.08.2012   | 30.04.20 13   | 9/3/20 14 Ct. Cases 52344 4/2016   | SFIO v/s Yusuf Properties P Ltd & ors   | 147                                | 30.01.20 14   | ACMM (Spl. Acts) Tis Hazari Court, Delhi   | Accused no 4 Sh. Upender singh convicted for fine of Rs. 10 thousand on 09.05.2016.   | 2016- 17   |
|-------|---------------------------|---------------|--------------|---------------|------------------------------------|-----------------------------------------|------------------------------------|---------------|--------------------------------------------|---------------------------------------------------------------------------------------|------------|
|    31 | Yusuf Properties P Ltd.   | 17.05.20 12   | 30.08.2012   | 30.04.20 13   | 8/3/20 14Ct. Cases 52344 7/2016    | SFIO v/s Yusuf Properties P Ltd & ors   | 159,16 6,210 & 220 (year 2010- 11) | 30.01.20 14   | ACMM (Spl. Acts) Tis Hazari Court, Delhi   | Accused no 4 Sh. Upender singh convicted for fine of Rs. 10 thousand on 10.12.2015.   | 2015- 16   |
|    32 | Yusuf Properties P Ltd.   | 17.05.20 12   | 30.08.2012   | 30.04.20 13   | 10/3/2 014 Ct. Cases 52173 8/2016  | SFIO v/s Yusuf Properties P Ltd & ors   | 159,16 6,210 & 220(FY 2009- 10)    | 30.01.20 14   | ACMM (Spl. Acts) Tis Hazari Court, Delhi   | Accused no 4 Sh. Upender singh convicted for fine of Rs. 10 thousand on 09.05.2016.   | 2016- 17   |

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