Lok Sabha Question No. 1951 (UNSTARRED), answered on 2017-12-29
Subject: Vanishing Companies
Ministry: CORPORATE AFFAIRS
Asked by: JANARDAN SINGH SIGRIWAL

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 1951 ANSWERED ON FRIDAY, THE 29TH DECEMBER, 2017 [PAUSHA 08, 1939 (SAKA)]

## VANISHING COMPANIES

## QUESTION

1951. SHRI JANARDAN SINGH SIGRIWAL:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the details of number of companies identified as companies which have vanished in the country including Bihar, State-wise;
- (b) whether any committee has been constituted to inquire into the issue related to the said companies and monitor the progress of the action taken against them;
- (c) if  so,  the  number  of  such  companies  and  their  promoters  against whom action has been taken so far;
- (d) the  details  of  steps  taken  by  the  Government  to  find  out  other companies declared as vanished; and
- (e) the  measures  taken/proposed  to  be  taken  by  the  Government  to check such incidents?

## ANSWER

MINISTER OF STATE FOR LAW AND JUSTICE           (SHRI P. P. CHAUDHARY) AND CORPORATE AFFAIRS

(a) to (e) The  Government  of  India  has  set  up  a  Coordination  and Monitoring  Committee  (CMC),  which  is  a  joint  mechanism  of  Ministry  of Corporate Affairs (MCA) and the Securities and Exchange Board of India (SEBI), for identifying Vanishing Companies.   From the Initial Public Offers (IPOs) which came to be issued during the period 1992-2001, a total number of 238 companies were identified as 'Vanishing Companies' by the CMC. Out of these, 161 companies have since been deleted from the list, as they have  subsequently  been  traced.  Presently,  there  are  only  77  Vanishing

Companies.  The Regional Task Forces (RTFs), with representation from MCA,  SEBI  and  RBI  oversee  the  action  taken  and  their  minutes  are considered by the CMC.

Contd…. 2/-

- 2 -

A Statement, indicating the names of the Vanishing Companies, their issue  size,  listed  under  the  corresponding  jurisdictional  Registrar  of Companies, as provided by SEBI is at Annexure - I.

Based on the inputs from field offices, the following steps have been taken:

- (1) First Information Reports (FIRs) have been lodged against the 77 vanishing companies and their Directors.
- (2) Prosecutions have been filed against these companies and their Promoters/Directors under section 162 and 220 of the Companies  Act,  1956  for  non-filing  of  Statutory  Returns  and under section 62/63, 68 and 628 of the Companies Act, 1956 for mis-statement in Prospectus/fraudulently inducing persons to invest  money/false  statements  made  in  the  offer  documents etc.

No fresh cases involving 'Vanishing Companies' have been identified by the CMC.

A  number  of  steps  have  been  taken  by  the  Government  to  save investors  from  frauds  including  frauds  by  vanishing  companies.  Some specific measures are:

- (i) In  2006,  the  Ministry  amended  the  Companies  Act,  1956  by inserting Sections 266A to 266G which makes it mandatory for every  existing  or  prospective  directors  to  obtain  a  'Director Identification Number'  (DIN), after submitting verification documents.  This has been continued under the Companies Act, 2013.
- (ii) In case of incorporation of a new company or change of address of an existing company, the Ministry has made it mandatory for the professionals to verify details of the company.

(iii) The Registrar of Companies scrutinize the Balance Sheet and other records of the company who raise money through public issue and monitor the utilization of such funds.

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## Annexure-1

## ANNEXURE  REFERRED  TO  IN  REPLY  TO  PART  (a)  to  (e)  OF  THE  UNSTARRED QUESTION NO. 1951 FOR ANSWER IN LOK SABHA ON 29.12.2017.

List of Vanishing Companies - Region-wise and RoC-wise (as on 12.07.2017)

| S. No.   | Name of the Company (and its old name(s), if any)                             | RoC       | Date of Incorp.   | Issue Size ( Cr)   | State/UT    |
|----------|-------------------------------------------------------------------------------|-----------|-------------------|--------------------|-------------|
| (1)      | (2)                                                                           | (3)       | (4)               | (5)                | (6)         |
| [10]     | EASTERN REGION                                                                |           |                   |                    |             |
| 1        | Universal Vita Alimentare Ltd.                                                | Cuttack   | 28.12.1987        | 1.80               | Odisha      |
| 2        | Asian Vegpro Industries Ltd                                                   | Kolkata   | 03.02.1994        | 7.09               | West Bengal |
| 3        | Oriental Remedies and Herbals Limited                                         | Kolkata   | 22.06.1993        | 1.88               | West Bengal |
| 4        | SSK Fiscal Services Ltd.                                                      | Kolkata   | 05.02.1990        | 2.00               | West Bengal |
| 5        | Saket Extrusions Ltd                                                          | Kolkata   | 30.04.1992        | 2.13               | West Bengal |
| 6        | Kiev Finance Ltd                                                              | Kolkata   | 02.12.1982        | 12.00              | West Bengal |
| 7        | Ambuja Zinc Ltd.                                                              | Patna     | 17.06.1987        | 2.14               | Bihar       |
| 8        | Bodh Gaya Ceramics Ltd                                                        | Patna     | 23.06.1983        | 0.49               | Bihar       |
| 9        | Cilson Organics Ltd.                                                          | Patna     | 20.01.1988        | 8.00               | Bihar       |
| 10       | Shree Vaishnavi Printing & Dyeing Ltd                                         | Patna     | 15.03.1993        | 3.24               | Bihar       |
| [22]     | NORTH-WESTERN REGION                                                          |           |                   |                    |             |
| 11       | Aashi Industries Ltd. (Formerly Aashi Pharmachem Limited )                    | Ahmedabad | 15.02.1991        | 5.52               | Gujarat     |
| 12       | Bhavna Steel Cast Limited                                                     | Ahmedabad | 12.06.1989        | 2.10               | Gujarat     |
| 13       | Genuine Commodities Development Co. Ltd                                       | Ahmedabad | 03.03.1992        | 2.68               | Gujarat     |
| 14       | Growth Agro Industries Ltd.                                                   | Ahmedabad | 03.11.1995        | 5.40               | Gujarat     |
| 15       | Kesar Greenfield International Ltd                                            | Ahmedabad | 16.09.1982        | 5.69               | Gujarat     |
| 16       | Lyons Industrial Estate Enterprises Ltd. (Formerly Lyons Range Finance Ltd. ) | Ahmedabad | 03.03.1993        | 6.37               | Gujarat     |
| 17       | Manav Pharma Ltd                                                              | Ahmedabad | 02.04.1992        | 5.30               | Gujarat     |
| 18       | Marine Cargo Company Ltd                                                      | Ahmedabad | 20.06.1989        | 3.41               | Gujarat     |
| 19       | Naturo Pest Ltd                                                               | Ahmedabad | 25.10.1992        | 4.84               | Gujarat     |

| S. No.   | Name of the Company (and its old name(s), if any)                   | RoC        | Date of Incorp.   | Issue Size ( Cr)   | State/UT       |
|----------|---------------------------------------------------------------------|------------|-------------------|--------------------|----------------|
| (1)      | (2)                                                                 | (3)        | (4)               | (5)                | (6)            |
| 20       | Nishu Fincap Ltd (Formerly Medha Finance and Securities Ltd )       | Ahmedabad  | 21.10.1994        | 4.25               | Gujarat        |
| 21       | Pur Opale Creations Ltd (Formerly Nuline Glassware (India) Limited  | Ahmedabad  | 07.02.1992        | 6.78               | Gujarat        |
| 22       | Protech Circuit Breakers Ltd                                        | Ahmedabad  | 01.04.1991        | 2.00               | Gujarat        |
| 23       | Protech Switchgears Limited                                         | Ahmedabad  | 20.12.1989        | 2.00               | Gujarat        |
| 24       | Shree Yaax Pharma & Cosmetics Ltd                                   | Ahmedabad  | 09.07.1995        | 6.06               | Gujarat        |
| 25       | Spil Finance Limited                                                | Ahmedabad  | 29.11.1994        | 5.70               | Gujarat        |
| 26       | Sushil Packagings (India) Ltd                                       | Ahmedabad  | 17.06.1992        | 4.52               | Gujarat        |
| 27       | Topline Shoes Limited                                               | Ahmedabad  | 19.04.1991        | 7.80               | Gujarat        |
| 28       | Hi-Tech Drugs Ltd                                                   | Gwalior    | 25.08.1988        | 3.23               | Madhya Pradesh |
| 29       | Rajadhiraj Industries Ltd                                           | Gwalior    | 18.11.1969        | 2.50               | Madhya Pradesh |
| 30       | Madhyavart Exxoil Limited                                           | Gwalior    | 27.01.1992        | 2.30               | Madhya Pradesh |
| 31       | South Asian Mushrooms Ltd                                           | Gwalior    | 30.06.1994        | 6.10               | Madhya Pradesh |
| 32       | Sterling Kalk Sand Bricks Ltd.                                      | Gwalior    | 02.03.1990        | 4.44               | Madhya Pradesh |
| [12]     | NORTHERN REGION                                                     |            |                   |                    |                |
| 33       | Carewell Hygiene Products Ltd.                                      | Chandigarh | 26.08.1987        | 2.49               | UT-Chandigarh  |
| 34       | Hallmark Drugs & Chemicals Ltd. (Formerly Lifeline Drugs Limited )  | Chandigarh | 12.12.1991        | 7.00               | Punjab         |
| 35       | Sukhchain Cements Ltd. (Formerly Ganapati Cements Private Limited ) | Chandigarh | 15.05.1991        | 3.65               | UT-Chandigarh  |
| 36       | Kedia Infotech Ltd (Formerly Grives Hotels Ltd. )                   | Delhi      | 23.03.1994        | 4.98               | NCT-Delhi      |
| 37       | Hoffland Investments Ltd. (Formerly Vadra Investments Limited )     | Delhi      | 19.04.1985        | 2.90               | NCT-Delhi      |
| 38       | Simplex Holdings Ltd.                                               | Delhi      | 18.05.1985        | 2.27               | NCT-Delhi      |
| 39       | Star Electronics Ltd.                                               | Delhi      | 19.03.1993        | 2.47               | NCT-Delhi      |
| 40       | Zed Investments Ltd.                                                | Delhi      | 16.11.1993        | 2.80               | NCT-Delhi      |

| S. No.   | Name of the Company (and its old name(s), if any)                                    | RoC       | Date of Incorp.   | Issue Size ( Cr)   | State/UT       |
|----------|--------------------------------------------------------------------------------------|-----------|-------------------|--------------------|----------------|
| (1)      | (2)                                                                                  | (3)       | (4)               | (5)                | (6)            |
| 41       | Rizvi Exports Ltd.                                                                   | Kanpur    | 17.11.1993        | 3.65               | Uttar Pradesh  |
| 42       | Shefali Papers Ltd.                                                                  | Kanpur    | 20.03.1991        | 2.57               | Uttar Pradesh  |
| 43       | Siddhartha Pharmachem Ltd.                                                           | Kanpur    | 31.03.1987        | 12.00              | Uttar Pradesh  |
| 44       | Vidiani Agrotech Industries Ltd.                                                     | Kanpur    | 13.07.1992        | 2.80               | Uttar Pradesh  |
| [16]     | SOUTH-EASTERN REGION                                                                 |           |                   |                    |                |
| 45       | Aditya Alkaloids Ltd                                                                 | Hyderabad | 31.07.1991        | 3.55               | Andhra Pradesh |
| 46       | Canara Credit Ltd                                                                    | Hyderabad | 08.02.1995        | 2.49               | Andhra Pradesh |
| 47       | Daisy Systems Limited                                                                | Hyderabad | 17.11.1993        | 1.31               | Andhra Pradesh |
| 48       | Deccan Petroleum Ltd                                                                 | Hyderabad | 21.01.1988        | 4.57               | Andhra Pradesh |
| 49       | Imap Technologies Limited                                                            | Hyderabad | 06.12.1999        | 1.80               | Andhra Pradesh |
| 50       | Kisha Impex Ltd (Formerly Kamakshi Housing Finance Ltd. )                            | Hyderabad | 06.12.1994        | 5.71               | Andhra Pradesh |
| 51       | Orpine Systems Limited                                                               | Hyderabad | 16.12.1999        | 2.71               | Andhra Pradesh |
| 52       | Raam Tyres Ltd [Formerly (two names) : Chhakri Tyres & Tubes Ltd Or Rhino Tyres Ltd] | Hyderabad | 13.07.1988        | 9.59               | Andhra Pradesh |
| 53       | Sai Graha Finance & Engineering Ltd                                                  | Hyderabad | 24.02.1993        | 4.05               | Andhra Pradesh |
| 54       | Sequel Soft India Limited                                                            | Hyderabad | 11/6/1997         |                    | Andhra Pradesh |
| 55       | Sibar Media & Entertainment Limited                                                  | Hyderabad | 12.03.1999        | 3.50               | Andhra Pradesh |
| 56       | Sibar Software Services (India) Limited                                              | Hyderabad | 23.09.1999        | 3.50               | Andhra Pradesh |
| 57       | Swal Computers Limited                                                               | Hyderabad | 30.01.1996        | 2.60               | Andhra Pradesh |
| 58       | Visie Cyber Tech Limited                                                             | Hyderabad | 16.06.1997        | 1.40               | Andhra Pradesh |
| 59       | Flora Wall Coverings Ltd                                                             | Bangalore | 28.07.1989        | 5.82               | Karnataka      |
| 60       | Ocean Knits Ltd                                                                      | Bangalore | 30.06.1992        | 2.61               | Karnataka      |
| [08]     | WESTERN REGION                                                                       |           |                   |                    |                |
| 61       | Hitesh Textile Mills Ltd.                                                            | Mumbai    | 09.02.1994        | 7.48               | Madhya Pradesh |
| 62       | Caldyn Aircon Ltd.                                                                   | Mumbai    | 19.09.1995        | 4.45               | Maharashtra    |
| 63       | Global Exhibitions Limited. (Formerly Global Network Limited )                       | Mumbai    | 18.05.1994        | 4.45               | Andhra Pradesh |
| 64       | Ichakalanji Soya Ltd ('Ichalkaranji Soya Ltd.')                                      | Mumbai    | 16.04.1991        | 2.00               | Maharashtra    |
| 65       | Realtime Finlease Ltd                                                                | Mumbai    | 29.07.1991        | 3.75               | Maharashtra    |

| S. No.   | Name of the Company (and its old name(s), if any)                          | RoC        | Date of Incorp.   | Issue Size ( Cr)   | State/UT    |
|----------|----------------------------------------------------------------------------|------------|-------------------|--------------------|-------------|
| (1)      | (2) (3)                                                                    |            | (4)               | (5)                | (6)         |
| 66       | Rusoday & Company Ltd                                                      | Mumbai     | 27.02.1985        | 0.94               | Maharashtra |
| 67       | Sparkle Foods Ltd                                                          | Mumbai     | 31.07.1986        | 5.00               | Maharashtra |
| 68       | Vipul Securites Ltd                                                        | Mumbai     | 11.08.1994        | 3.00               | Maharashtra |
| [09]     | SOUTHERN REGION                                                            |            |                   |                    |             |
| 69       | Amigo Exports Ltd                                                          | Chennai    | 17.11.1989        | 3.30               | Tamil Nadu  |
| 70       | Crestworld Marines Ltd                                                     | Chennai    | 28.11.1994        | 4.38               | Tamil Nadu  |
| 71       | Ma Capital Market Services Ltd                                             | Chennai    | 14.08.1991        | 1.44               | Tamil Nadu  |
| 72       | Nagarjuna Jiyo Industries Ltd                                              | Chennai    | 25.05.1992        | 2.73               | Tamil Nadu  |
| 73       | Novel Finance (I) Ltd (Formerly P K Vaduvammal Finance & Investments Ltd ) | Chennai    | 07.06.1990        | 1.50               | Tamil Nadu  |
| 74       | Panggo Exports Ltd                                                         | Chennai    | 09.07.1993        | 2.47               | Tamil Nadu  |
| 75       | AVR Securities Limited                                                     | Coimbatore | 14.11.1994        | 2.47               | Tamil Nadu  |
| 76       | Global Blooms India Ltd                                                    | Coimbatore | 30.12.1994        | 2.10               | Tamil Nadu  |
| 77       | Shyam Printers & Publishers Ltd.                                           | Coimbatore | 02.06.1992        | 2.25               | Tamil Nadu  |

*******