Lok Sabha Question No. 5017 (UNSTARRED), answered on 2017-03-31
Subject: Vanishing Companies
Ministry: CORPORATE AFFAIRS
Asked by: T. RADHAKRISHNAN, VIJAY KUMAR S.R., KAMLA DEVI PATLE, ASHOK SHANKARRAO CHAVAN, SUNIL BALIRAM GAIKWAD, GAJANAN CHANDRAKANT KIRTIKAR, KUNWAR HARIBANSH SINGH, BIDYUT BARAN MAHATO

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 5017 ANSWERED ON FRIDAY, THE 31ST MARCH, 2017 [CHAITRA 10, 1939 (SAKA)]

## VANISHING COMPANIES QUESTION

5017. SHRI T. RADHAKRISHNAN: SHRI S. R. VIJAYAKUMAR: SHRIMATI KAMLA DEVI PAATLE: SHRI ASHOK SHANKARRAO CHAVAN: DR. SUNIL BALIRAM GAIKWAD: SHRI GAJANAN KIRTIKAR: KUNWAR HARIBANSH SINGH: SHRI BIDYUT BARAN MAHATO:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the details of the companies that have vanished after raising public money in the past, State/UT-wise;
- (b) whether there is coordination among various agencies to keep a tab on vanishing companies and if so, the details thereof and if not, the reasons therefor;
- (c) whether  the  Government  is  considering  involvement  of  private agencies  in  fighting  against  vanishing  companies  and  if  so,  the  details thereof;
- (d) the present status of DCM Finance, Nova Pumech, Alps BPO Services, Birmingham Thermotech, Kolar Biotech, Mini Software, Padmini Technologies,  Punsumi  India,  Sunstar  Software,  Vatsa  Corporation  and Nova Iron and Steel Companies; and
- (e) the further action taken/being taken by the Government against such companies/promoters and to return the investors money?

## ANSWER

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

(a) & (b): Government of India has set up a Co-ordination and Monitoring Committee (CMC), a joint mechanism of Ministry of Corporate Affairs (MCA)

…. Contd /-

- 2 - and  Securities  and  Exchange  Board  of  India  (SEBI),  which  is  the  policy making body for identifying vanishing companies.  From the Initial Public Offers (IPOs) which came during the period 1992-2001, a total number of 238 companies were identified as 'vanishing companies' by the CMC.  Out of  which  160  companies have since been deleted from the list as these companies  where  subsequently  traced.    Presently,  only  78  companies remain.    The  identification  and  monitoring  of  companies  categorised  as 'Vanishing Companies' is done by a Central Monitoring Committee and the Regional Task Forces constituted by the Government.

The  statement  indicating  Public  Issues  of  these  78  companies  as provided  by  the  Security  and  Exchange  Board  of  India  (SEBI)  is  at 'Annexure - I'

(c): No.

(d) and (e): DCM Finance, Nova Pumech, Alps BPO Services, Birmingham Thermotech, Kolar Biotech, Mini Software, Padmini Technologies, Punsumi India,  Sunstar  Software,  Vatsa  Corporation  and  Nova  Iron  and  Steel Companies were not identified as vanishing companies by the CMC.

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## Annexure-I

## ANAAANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE UNSTARRED QUESTION NO. 5017 FOR ANSWER IN LOK SABHA ON 31.03.2017

## VANISHING COMPANIES IDENTIFIED BY CMC AS ON APRIL 25, 2014

|   S.No. | Name of the companies                                     | Region     | City         | State                      |   Amount raised (in Rs. Crore) |
|---------|-----------------------------------------------------------|------------|--------------|----------------------------|--------------------------------|
|       1 | Aashi Industries Ltd. (Formerly Aashi Pharmachem Limited) | North West | Ahmedabad    | Gujarat                    |                          5.52  |
|       2 | Aditya Alkaloids Ltd                                      | South      | Hyderabad    | Andhrapradesh              |                          3.55  |
|       3 | Ambuja Zinc Ltd.                                          | East       | Patna        | Bihar                      |                          2.14  |
|       4 | Amigo Exports Ltd                                         | South      | Chennai      | Tamilnadu                  |                          3.3   |
|       5 | Asian Vegpro Industries Ltd                               | East       | Kolkata      | West Bengal                |                          7.09  |
|       6 | AVR Securities                                            | South      | Coimbatore   | Tamilnadu                  |                          2.47  |
|       7 | Bhawana Steel Cast Ltd                                    | North West | Baroda       | Gujarat                    |                          2.1   |
|       8 | Bodh Gaya Ceramics Ltd.                                   | East       | Patna        | Bihar                      |                          0.49  |
|       9 | Caldyn Aircon Ltd.                                        | West       | Mumbai       | Maharashtra                |                          4.45  |
|      10 | Canara Credits Ltd                                        | South      | Hyderabad    | Andhrapradesh              |                          2.49  |
|      11 | Carewell Hygiene Ltd.                                     | North      | Chandigarh   | Union Territory            |                          2.49  |
|      12 | Cilson Organics Ltd.                                      | East       | Patna        | Bihar                      |                          8     |
|      13 | Crestworld Marines Ltd                                    | South      | Chennai      | Tamilnadu                  |                          4.38  |
|      14 | Daisy Systems Ltd                                         | South      | Hyderabad    | Andhrapradesh              |                          2.625 |
|      15 | Deccan Petroleum Ltd                                      | South      | Secunderabad | Andhrapradesh              |                          4.57  |
|      16 | Flora Wallcoverings Ltd                                   | South      | Bengaluru    | Karnataka                  |                          5.82  |
|      17 | Genuine Commodities Development Co. Ltd                   | North West | Ahmedabad    | Gujarat                    |                          2.68  |
|      18 | Global Blooms India Ltd                                   | South      | Coimbatore   | Tamilnadu                  |                          2.1   |
|      19 | Global Exhibitions Ltd.                                   | West       | Hyderabad    | Andhrapradesh              |                          4.45  |
|      20 | Grivs Hotels Ltd. (Name Changed To Kedia Infotech Ltd.)   | North      | New Delhi    | National Capital Territory |                          4.98  |
|      21 | Growth Agron Industries Ltd                               | North      | Ahmedabad    | Gujarat                    |                          5.4   |
|      22 | Hallmark Drugs & Chemicals Ltd.                           | North      | Mohali       | Punjab                     |                          7     |
|      23 | Hitech Drugs Ltd                                          | North West | Ratlam       | Madhya Pradesh             |                          3.23  |
|      24 | Hitesh Textile Mills                                      | West       | Mumbai       | Maharashtra                |                          7.48  |

|   25. | Hoffland Investment Ltd. (Formerly Vadra Investments Ltd.)           | North      | New Delhi   | National Capital Territory   |   2.9 |
|-------|----------------------------------------------------------------------|------------|-------------|------------------------------|-------|
|    26 | Ichakalanji Soya Ltd                                                 | West       | Mumbai      | Maharashtra                  |  2    |
|    27 | Imap Technologies Ltd                                                | South      | Hyderabad   | Andhrapradesh                |  1.8  |
|    28 | Kamakshi Housing Finance Ltd                                         | South      | Hyderabad   | Andhrapradesh                |  5.71 |
|    29 | Kesar Greenfield International Ltd                                   | North West | Ahmedabad   | Gujarat                      |  5.69 |
|    30 | Kiev Finance Ltd                                                     | East       | Kolkata     | West Bengal                  | 12    |
|    31 | Lyons Industrial Enterprises Ltd                                     | North West | Ahmedabad   | Gujarat                      |  6.37 |
|    32 | Maa Capital Market Services Ltd                                      | South      | Chennai     | Tamilnadu                    |  1.44 |
|    33 | Madhya Varat Exxoils Ltd                                             | North West | Bhopal      | Madhya Pradesh               |  2.3  |
|    34 | Manav Pharma Ltd                                                     | North West | Ahmedabad   | Gujarat                      |  5.3  |
|    35 | Marine Cargo Ltd                                                     | North West | Ahmedabad   | Gujarat                      |  3.41 |
|    36 | Nagarjuna Industries Ltd (Nagarjuna Jiyo Marines Ltd)                | South      | Chennai     | Tamilnadu                    |  2.73 |
|    37 | Naturo-Pest Ltd                                                      | North West | Vadodara    | Gujarat                      |  4.84 |
|    38 | Nishu Fincap Ltd                                                     | North West | Ahmedabad   | Gujarat                      |  4.25 |
|    39 | Nuline Glassware Ltd (Subsequently change to Pur Opale Creation Ltd) | North West | Vadodara    | Gujarat                      |  6.78 |
|    40 | Ocean Knits Ltd                                                      | South      | Bengaluru   | Karnataka                    |  2.61 |
|    41 | Oriental Remedies And Herbals Limited                                | East       | Kolkata     | West Bengal                  |  1.88 |
|    42 | Orpine Systems Ltd.                                                  | South      | Hyderabad   | Andhrapradesh                |  2.71 |
|    43 | P K Vaduvammal Finance Ltd( Novel Finance Ltd)                       | South      | Chennai     | Tamilnadu                    |  1.5  |
|    44 | Panggo Exports Ltd                                                   | South      | Chennai     | Tamilnadu                    |  2.47 |
|    45 | Pashupati Cables Limited                                             | West       | Mumbai      | Maharashtra                  | 11.95 |
|    46 | Protech Circuit Breakers Ltd                                         | North West | Vadodara    | Gujarat                      |  2    |
|    47 | Protech Switch Gears Ltd                                             | North West | Vadodara    | Gujarat                      |  2    |
|    48 | Rajadhiraj Industies Ltd                                             | North West | Seoni       | Madhya Pradesh               |  2.5  |
|    49 | Realtime Finlease Ltd                                                | West       | Mumbai      | Maharashtra                  |  3.75 |
|    50 | Rhino Tyres Ltd                                                      | South      | Hyderabad   | Andhrapradesh                |  9.59 |

|   51. | Rizvi Exports Ltd.                        | North      | Kanpur       | Uttar Pradesh              |   3.65 |
|-------|-------------------------------------------|------------|--------------|----------------------------|--------|
|    52 | Rusoday & Company Limited                 | West       | Mumbai       | Maharashtra                |   0.94 |
|    53 | S S K Fiscal Services Ltd.                | East       | Kolkata      | West Bengal                |   2    |
|    54 | Sai Gruha Fiannces And Engineering Ltd    | South      | Secunderabad | Andhrapradesh              |   4.05 |
|    55 | Saket Extrusions Ltd                      | East       | Kolkata      | West Bengal                |   2.13 |
|    56 | Sequelsoft India Limited                  | South      | Hyderabad    | Andhrapradesh              |   6    |
|    57 | Shefali Papers Ltd.                       | North      | Saharanpur   | Uttar Pradesh              |   2.57 |
|    58 | Shree Vaishnavi Dyeing & Printing Limited | East       | Patna        | Bihar                      |   3.24 |
|    59 | Shree Yaax Pharma And Cosmetics Ltd       | North West | Ahmedabad    | Gujarat                    |   6.06 |
|    60 | Shyam Prints & Publishers Ltd             | South      | Coimbatore   | Tamilnadu                  |   2.25 |
|    61 | Sibar Media & Entertainment Ltd           | South      | Vijayawada   | Andhrapradesh              |   5.5  |
|    62 | Sibar Software Services (India)Ltd        | South      | Vijayawada   | Andhrapradesh              |   3.5  |
|    63 | Siddhartha Pharmachem Ltd.                | North      | Moradbad     | Uttar Pradesh              |  12    |
|    64 | Simplex Holding Ltd.                      | North      | New Delhi    | National Capital Territory |   2.27 |
|    65 | South Asian Mushrooms Ltd                 | North West | Bhopal       | Madhya Pradesh             |   6.1  |
|    66 | Sparkle Foods Ltd                         | West       | Mumbai       | Maharashtra                |   5    |
|    67 | Spil Finaance Ltd                         | North      | Ahmedabad    | Gujarat                    |   5.7  |
|    68 | Star Electronics Ltd.                     | North      | New Delhi    | National Capital Territory |   2.47 |
|    69 | Sterling Kalk Sand Brick S Ltd            | North West | Indore       | Madhya Pradesh             |   4.44 |
|    70 | Sukhchain Cements Ltd.                    | North      | Chandigarh   | Union Territory            |   3.65 |
|    71 | Sushil Packaging(India) Ltd               | North West | Ahmedabad    | Gujarat                    |   4.52 |
|    72 | Swal Computers Ltd.                       | South      | Hyderabad    | Andhrapradesh              |   2.6  |
|    73 | Topline Shoes Ltd                         | North      | Vadodara     | Gujarat                    |   7.8  |
|    74 | Universal Vita Alimentare Ltd.            | East       | Bhubaneswar  | Odisha                     |   1.8  |
|    75 | Vidiani Agrotech Ltd.                     | North      | Mathura      | Uttar Pradesh              |  39.95 |
|    76 | Vipul Securites Ltd                       | West       | Mumbai       | Maharashtra                |   3    |
|    77 | Visie Cybertech Ltd                       | South      | Hyderabad    | Andhra Pradesh             |   1.4  |

| 78.   | Zed Investment Ltd.   | North   | New Delhi   | National   |    2.8 |
|-------|-----------------------|---------|-------------|------------|--------|
|       |                       |         |             | Total      | 356.68 |

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