Lok Sabha Question No. 4225 (UNSTARRED), answered on 2017-08-11
Subject: Special Courts
Ministry: CORPORATE AFFAIRS
Asked by: DUSHYANT CHAUTALA

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 4225 ANSWERED ON FRIDAY, THE 11th AUGUST, 2017/ SHRAVANA 20, 1939 (SAKA)

## SPECIAL COURTS

## QUESTION

4225.  SHRI DUSHYANT CHAUTALA:

Will the Minister of CORPORATE AFFAIRS कारपोरेट कार्य मंत्री

be pleased to state:

- (a) whether the Government has planned to set up special courts in different States and Union Territories for speedy trials of serious corporate offences;
- (b) if so, the details thereof;
- (c) whether the Government is also concerned about the number of fake corporate companies which disappear after committing serious financial frauds; and
- (d) if so, the details thereof along with the total number of such cases identified by the Government during the last three years and the total number of cases solved during the said period?

## ANSWER

(SHRI ARJUN RAM MEGHWAL)

(श्री अर्जुन राम मेघवाल)

THE MINISTER OF STATE

IN THE MINISTRY OF CORPORATE AFFAIRS

कारपोरेट कार्ु मंत्रालर् में राज्र् मंत्री

- (a) and (b): Yes, Section 435 of the Companies Act, 2013 (The Act) provides for establishment or  designation  of  as  many  special  courts  as  may  be  necessary.      The  Government  has designated  21  existing  courts  of  Sessions/Additional  Sessions  Courts  as  Special  Courts under the said Act for trial of offences punishable with imprisonment of 2 years or more.
- (c) and (d):- The term Fake Company is not defined under the Companies Act, 1956/2013. However, as per common parlance, a fake company is one which is not registered under the Companies Act, 1956/2013 but holding  itself  out  to  the  public  as  a  registered  company. During the last three years, the following unregistered companies have come to the notice of this Ministry against whom the action has been taken as under:-

|   Sl. No. | Name of unregistered companies         | Jurisdictional Registrar of Companies   | Action against unregistered companies                                                                                                                                                    |
|-----------|----------------------------------------|-----------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|         1 | Krishi Vipran Vikas Ltd.               | Kanpur                                  | Prosecution u/s 453 of the Companies Act, 2013 has been launched.                                                                                                                        |
|         2 | Bhagya Laxmi Financial Private Limited | Delhi                                   | The Reserve Bank of India has intimated that it has taken up the matter with the then Department of Electronic and Information Technology (DEITY) (now a Ministry) to close the website. |
|         3 | Natraj Finance                         | Delhi                                   | An FIR has been filed on 22.03.2017 by the Registrar of Companies, Delhi.                                                                                                                |

|   4 | Webtern India Pvt. Ltd.     | Pune   | Prosecution u/s 453 of the Companies Act, 2013 has been launched on 12.05.2017 vide Case No. 14969/2017.   |
|-----|-----------------------------|--------|------------------------------------------------------------------------------------------------------------|
|   5 | Tanishka Infotech Pvt. Ltd. | Pune   | The case has been referred to the State Economic Offence Wing (EOW) on 06.10.2016.                         |

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