Lok Sabha Question No. 348 (STARRED), answered on 2016-12-09
Subject: Registration of Companies with ROCs
Ministry: CORPORATE AFFAIRS
Asked by: GOPAL CHINAYYA SHETTY

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

LOK SABHA STARRED QUESTION NO. 348 ANSWERED ON FRIDAY, THE 09 TH  DECEMBER, 2016 [AGRAHAYANA 18, 1938 (SAKA)]

REGISTRATION OF COMPANIES WITH ROCs

## QUESTION

*348.  SHRI GOPAL SHETTY:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

(a) whether a large number of companies especially in rural areas are  functioning  without  being  registered  with  the  Registrar  of Companies (ROCs) and if so, the details thereof, State/UT-wise;

(b) whether it is mandatory for a company to get registered it with ROCs within a stipulated time period and if so, the details and the norms fixed in this regard; and

(c) the action taken by the Government against erring companies during the last three years and the current year, Year/ State-wise?

## ANSWER

THE MINISTER OF CORPORATE AFFAIRS              (SHRI ARUN JAITLEY)

(a) to (c) A statement is laid on the Table of the House.

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## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (c) OF THE STARRED QUESTION NO. 348 FOR ANSWER IN LOK SABHA ON 09-12-2016

(a) & (c): The Ministry has received seven complaints during the last three  years  and  current  year  (up  to  30-11-2016)  in  respect  of getting registered under the Companies Act. The details of complaints and action taken thereupon by the respective Registrars of Companies companies allegedly carrying out operations without are enclosed as Annexure-I. (b) Yes, it is mandatory to get a company registered for conducting business  as  an  entity  incorporated  under  the  Companies  Act.  The incorporation  of  a  company  is  done  by  following  the  provisions prescribed under Chapter II of the Companies Act, 2013 read with the Companies  (Registration  Offices  and  Fees)  Rules,  2014  framed thereunder  and  amendments  thereto  from  time  to  time.    Further, section 453 of the Companies Act, 2013 prescribes punishment for improper use of word 'Limited' or words 'Private Limited'.

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## Annexure - I

## ANNEXURE REFERRED TO IN REPLY TO PART (a) & (c) OF THE STARRED QUESTION NO. 348 FOR ANSWER IN LOK SABHA ON 09.12.2016

## Details of companies against whom complaints received for operating without incorporation

|   S. No. | Name of the Company                                             | Registrar of Companies   | Action Taken                                                                                                                                                                                                                                               |
|----------|-----------------------------------------------------------------|--------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|        1 | Webtern India Private Limited                                   | ROC, Pune                | Matter referred to Economic Offences Wing as no such company was found at the address provided by the complainant                                                                                                                                          |
|        2 | Tanishka Infotech Private Limited                               | ROC, Pune                | Matter referred to Economic Offences Wing as no such company was found at the address provided by the complainant.                                                                                                                                         |
|        3 | Corporate Solutions and Hospitality Services Private Limited    | ROC, Bangalore           | The complaint was closed as no such company was found at the address provided by the complainant and there was no response to the reference made to the complainant to provide further details.                                                            |
|        4 | Krishi Vipran Vikas Limited                                     | ROC, Kanpur              | The complaint was examined and it was observed that the company was functioning without incorporation under the Companies Act. The ROC has filed prosecution under section 453 of the Companies Act, 2013 for the default.                                 |
|        5 | Speakasia Online Pte. Limited (an unregistered foreign company) | ROC, Delhi               | Serious Fraud Investigation Office (SFIO) of this Ministry has conducted investigation of the said company and has filed prosecution under various provisions of the Companies Act, 1956 as well as under the Indian Penal Code for the offences reported. |
|        6 | Bhagya Laxmi Finance Private Limited                            | ROC, Delhi               | The complaint has been referred to the Department of Electronics & Information Technology (the entity was running a website in this name) as the letter issued to the company by ROC, Delhi office was received back undelivered.                          |
|        7 | Natraj Finance                                                  | ROC, Delhi               | The complaint has been examined and a report submitted by ROC, Delhi in the                                                                                                                                                                                |

| matter is under examination in the Ministry.   |
|------------------------------------------------|

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