Lok Sabha Question No. 703 (UNSTARRED), answered on 2015-07-24
Subject: Penality on Directors of Companies
Ministry: CORPORATE AFFAIRS
Asked by: RAGHAV LAKHANPAL

GOVERNMENT OF INDIA

MINISTRY OF CORPORATE AFFAIRS

LOK SABHA

UNSTARRED QUESTION NO. 703

ANSWERED ON FRIDAY, THE 24 TH JULY, 2015

[SHRAVANA 2, 1937 (SAKA)]

PENALTY ON DIRECTORS OF COMPANIES

QUESTION

703.	SHRI RAGHAV LAKHANPAL:

**Will the Minister of CORPORATE AFFAIRS**

be pleased to state:

(a) the details of imprisonment/ penalisation of Directors of companies having turnover of more than Rs.50 crore annually in the year 2014-15, company-wise; and

(b) the details of the charges levied against such directors and current status of these cases, company-wise?

ANSWER

THE MINISTER OF CORPORATE AFFAIRS                           (SHRI ARUN JAITLEY)

(a) & (b) Information pertaining to imprisonment/penalization of directors of companies having turnover of more than Rs 50 crore annually, in the year 2014-15 is annexed herewith.

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ANNEXURE TO UNSTARRED QUESTION NO. 703 FOR ANSWER IN LOK SABHA

ON 24-07-2015

INFORMATION ABOUT PENALIZATION OF DIRECTORS OF THE COMPANIES HAVING A TURNOVER OF MORE THAN RS.50 CRORES ANNUALLY IN THE YEAR 2014-15

|   **S. No.** | **Name of Company**                 | **Name of the Directors**                                                                          | **Section of Companies Act, 1956 violated**   | **Penalty levied**                                                                                                                                                                                                                                                                             | **Status of the case**                                                                                                                                                                                                                                        |
|--------------|-------------------------------------|----------------------------------------------------------------------------------------------------|-----------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|           1. | M/s XRBIA DEVELOPERS LIMITED        | Dilip Ramkrishna Khapre,  Manoj Kumar Murlidhar Kamble                                             | 159, 220(3)                                   | Total Rs.3000/- fine (Rs.500/- fine imposed on each director apart from fine on the company in two cases)                                                                                                                                                                                      | Action Completed                                                                                                                                                                                                                                              |
|            2 | M/s BORACHEM INDUSTRIES LIMITED     | Suresh Kanayalal Raka, Ashok Namdevrao Rukari,  Omprakash Pattnayak                                | 159, 220(3)                                   | Total Rs.4000/- fine (Rs.500/- fine imposed on each director apart from fine on the company in two cases)                                                                                                                                                                                      | Action Completed                                                                                                                                                                                                                                              |
|            3 | M/s LI TAKA PHARMACEUTICALS LIMITED | Pravin Kumar Kantilal Mutha,  Suresh Kanayalal Raka, Cajetan Valerian Dsouza,  Omprakash attanayak | 159, 220(3)                                   | Total Rs.5000/- fine (Rs.500/- fine imposed on each director apart from fine on the company in two cases)                                                                                                                                                                                      | Action Completed                                                                                                                                                                                                                                              |
|            4 | M/s SIDHANATH SUGAR MILLS LIMITED   | Dilip Bramhadeo Mane                                                                               | 220(3)                                        | Total Rs.1000/- fine (Rs.500/- fine imposed on each director apart from fine on the company in this case)                                                                                                                                                                                      | Action Completed                                                                                                                                                                                                                                              |
|            5 | M/s PEGASUS HEALTHCARE LIMITED      | Rajendra Chhotubahi Kapadia, Suresh Kanayalal Raka,  Cajetan Valerian Dsouza                       | 159, 220(3)                                   | Total Rs.4000/- fine (Rs.500/- fine imposed on each director apart from fine on the company in two cases)                                                                                                                                                                                      | Action Completed                                                                                                                                                                                                                                              |
|            6 | M/s ATIBAR INDUSTRIES COMPANY LTD   | Shri Samir Kumar Sarawgi, Managing Director,  Shri Bibhu Prasad Bhoi, company secretary            | 220                                           | Total Rs.4500/- fine (Rs1500/- fine imposed on each Managing Director and Company Secretary apart from fine on the company)                                                                                                                                                                    | Action Completed                                                                                                                                                                                                                                              |
|            7 | M/s SCL STEEL CORPORATION LIMITED   | Avijit Chakraborty,  Manas Kumar Dan,  Prasanta Chatterjee,  Joy deb Biswas                        | 56(3), 60B/629A, 67 (1) & (2) /629A and  68   | Total Rs.1,95,000/- fine (Rs.39,000 fine imposed on each Director apart from fine on the Company)                                                                                                                                                                                              | Action Completed                                                                                                                                                                                                                                              |
|            8 | M/s MAN STRUCTURALS PRIVATE LIMITED | Kishore P. Rungta, Managing Director                                                               | 58A (1) & 58A(2) read with 58A(6)             | Fine of Rs.1,89,31,294/-, Rs.76,74,525/-, Rs.12,59,131/-  for the years 1996-97, 1997-98, 1998-99 respectively  imposed on  the company.  Further, the Managing Director of the company was convicted for a period of two year simple imprisonment and a fine of Rs. 5000/- was imposed on him | The Company and Managing Director have filed an appeal before the Appellate Court which is pending.                                                                                                                                                           |
|            9 | LAKHANI INDIA LIMITED               | Amarjeet Kalra Whole Time Director, Arun Virmani, Company Secretary                                | 159/220                                       | Total Rs.20000/- fine  (Rs.10000 each on whole time Director and Secretary)                                                                                                                                                                                                                    | Case in respect of one of the directors, Shri Parmeshwar Dyal Lakhani, has been consigned to record by the Court as the Court has declared him a Proclaimed Offender.                                                                                         |
|           10 | SATYAM  COMPUTER SERVICES  LTD.     | Ramalinga Raju,  B. Ramaraju,  V. Srinivas                                                         | 309(1) & 628                                  | Fine of Rs. 5 lakh each and in default of paying fine, simple imprisonment of 6 months each                                                                                                                                                                                                    | All the four directors convicted have gone in appeal.                                                                                                                                                                                                         |
|           10 | SATYAM  COMPUTER SERVICES  LTD.     | Ramalinga Raju,  B. Ramaraju,  Srinivas, Mynampati                                                 | 211(7) & 628                                  | Simple Imprisonment of 6 months for each accused and Fine of Rs. 10,000, and  in default of paying fine,  simple imprisonment of 1 month each                                                                                                                                                  | All the four directors convicted have gone in appeal.                                                                                                                                                                                                         |
|           10 | SATYAM  COMPUTER SERVICES  LTD.     | Ramalinga Raju,  B. Ramaraju,  Srinivas,  Mynampati                                                | 211 & 628                                     | Simple Imprisonment of 6 months for each accused and Fine of Rs. 10,000, and  in default of paying fine,  simple imprisonment of 1 month each                                                                                                                                                  | All the four directors convicted have gone in appeal.                                                                                                                                                                                                         |
|           10 | SATYAM  COMPUTER SERVICES  LTD.     | Ramalinga Raju,  B. Ramaraju,  Mynampati                                                           | 217 (2a) &  628                               | Simple Imprisonment of 6 months for each accused and Fine of Rs. 20,000/- and  in default of paying fine,  simple imprisonment of 1 month each                                                                                                                                                 | All the four directors convicted have gone in appeal.                                                                                                                                                                                                         |
|           10 | SATYAM  COMPUTER SERVICES  LTD.     | Ramalinga Raju,  B. Ramaraju,  Srinivas                                                            | 211 (1) & (2) & 628                           | Simple Imprisonment of 6 months for each accused and Fine of Rs. 10,000/- and in default of paying fine, simple imprisonment of 1 month each.                                                                                                                                                  | All the four directors convicted have gone in appeal.                                                                                                                                                                                                         |
|           10 | SATYAM  COMPUTER SERVICES  LTD.     | Ramalinga Raju,  B. Ramaraju,  Mynampati                                                           | 220 (1) & 628                                 | Fine of Rs. 5 lakh and in default of paying fine, simple imprisonment of 6 month each.                                                                                                                                                                                                         | All the four directors convicted have gone in appeal.                                                                                                                                                                                                         |
|          11. | **JVG GROUP COMPANIES**             |                                                                                                    |                                               |                                                                                                                                                                                                                                                                                                | The matter is still pending against   Mrs. Namrata Krishan, Director who has been declared as Proclaimed offender by the court.  Another Director Sh. D K Aggarwal is no more. Proceedings against another Director Sh. Vijay Kumar Sharma have been dropped. |
|          11. | JVG HOLDINGS                        | Upender Singh                                                                                      | 159 r/w 220                                   | Fine of Rs.10, 000                                                                                                                                                                                                                                                                             | The matter is still pending against   Mrs. Namrata Krishan, Director who has been declared as Proclaimed offender by the court.  Another Director Sh. D K Aggarwal is no more. Proceedings against another Director Sh. Vijay Kumar Sharma have been dropped. |
|          11. |                                     | S.L. Maloo                                                                                         | 217 (5)                                       | Fine of Rs.10, 000                                                                                                                                                                                                                                                                             | The matter is still pending against   Mrs. Namrata Krishan, Director who has been declared as Proclaimed offender by the court.  Another Director Sh. D K Aggarwal is no more. Proceedings against another Director Sh. Vijay Kumar Sharma have been dropped. |
|          11. | JVG HOTELS                          | S.L. Maloo                                                                                         | 217 (5)                                       | Fine of Rs.10, 000                                                                                                                                                                                                                                                                             | The matter is still pending against   Mrs. Namrata Krishan, Director who has been declared as Proclaimed offender by the court.  Another Director Sh. D K Aggarwal is no more. Proceedings against another Director Sh. Vijay Kumar Sharma have been dropped. |
|          11. | JVG STEEL                           | S.L. Maloo                                                                                         | 215                                           | Fine of Rs.10, 000                                                                                                                                                                                                                                                                             | The matter is still pending against   Mrs. Namrata Krishan, Director who has been declared as Proclaimed offender by the court.  Another Director Sh. D K Aggarwal is no more. Proceedings against another Director Sh. Vijay Kumar Sharma have been dropped. |
|          11. | JVG HOUSING FINANCE                 | S.L. Maloo                                                                                         | 159/220 (1)                                   | Fine of Rs.10, 000 for non-filing of balance sheet as at 31.3.2007                                                                                                                                                                                                                             | The matter is still pending against   Mrs. Namrata Krishan, Director who has been declared as Proclaimed offender by the court.  Another Director Sh. D K Aggarwal is no more. Proceedings against another Director Sh. Vijay Kumar Sharma have been dropped. |
|          11. | JVG HOUSING FINANCE                 | S.L. Maloo                                                                                         | 159/220 (1)                                   | Fine of Rs10, 000 for non-filing of balance sheet as at 31.3.2006.                                                                                                                                                                                                                             | The matter is still pending against   Mrs. Namrata Krishan, Director who has been declared as Proclaimed offender by the court.  Another Director Sh. D K Aggarwal is no more. Proceedings against another Director Sh. Vijay Kumar Sharma have been dropped. |

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