Lok Sabha Question No. 162 (UNSTARRED), answered on 2020-09-14
Subject: Violation of Company Law
Ministry: CORPORATE AFFAIRS
Asked by: Sanjeev Kumar Singari

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO.  162 ANSWERED ON MONDAY, SEPTEMBER 14, 2020 BHADRAPADA 23, 1942 (SAKA)

## VIOLATION OF COMPANY LAW QUESTION

162: DR. SANJEEV KUMAR SINGARI:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कॉर्पोर े ट कार्य मंत्री

- (a) whether the Government has any information of the companies which have violated the provisions of Company Law;
- (b) if so, the details thereof during the last two years along with reasons therefor ; and
- (c) the  number  of  cases  in  which  an  enquiry  has  been  conducted  and  action  initiated against such companies?

## ANSWER

THE MINISTER OF STATE FOR FINANCE AND CORPORATE AFFAIRS                                 (SHRI ANURAG SINGH THAKUR)

वित्त एिं कॉर्पोर े ट कार्य मंत्रालर् में राज्य मंत्री

(

श्री अनुराग व ंह ठाक ु र )

- (a)  &  (b):  Yes  Sir,  the  Government  in  the  Ministry  of  Corporate  Affairs  (MCA)  has information of the companies which have violated the provisions of Company Law. MCA either  directly  or  through  Regional  Directors  (RDs)/  Registrar  of  Companies  (ROCs) receive  complaints  against  companies  from  public  (Individual/entities),  from  other Ministries  etc.,  which  are  examined  and  action  is  taken  as  per  the  provisions  of  the Companies Act, 2013 which includes ordering and conducting  Inquiries, Inspections or Investigations  in  terms  of  section  206(1),(4),(5),  section  210  and  section  212  of  the Companies  Act,  2013  respectively  as  the  case  may  be  on  merits  of  each  case  in complaints of such nature involving fraud which require multi-disciplinary action, where large  public  interest  and  huge  money  transactions  are  involved  are  assigned  to  the Serious Fraud Investigation Office (SFIO) by the MCA.

The  details  of  Inquiries/Inspections/Investigations  ordered  during  last  two  years  from 2018-19 and 2019-20 are as under:

|   No of Inquiry ordered u/s 206 (4) |   No of Inspection ordered u/s 206 (5) |   No of Investigation ordered u/s 210 |   No of Investigation ordered u/s 212 for SFIO |
|-------------------------------------|----------------------------------------|---------------------------------------|------------------------------------------------|
|                                 878 |                                    674 |                                   167 |                                             59 |

The  reasons  for  ordering  Inquiries/Inspections/Investigations  varies  from  case  to  case such  as  frauds,  non-compliance  of  the  provisions  of  the  Companies  Act,  non-refund  of deposit received from public under the Companies Act, complaints received from other Ministries, Forwarding the complaints filed by the banks on borrowings by the companies and on the basis of orders of Hon'ble Court/Tribunal.

- (c) There are 660 number of cases in which enquiry has been conducted.  Based on the findings, prosecutions are filed under the provisions of the Companies Act, 2013.

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