Lok Sabha Question No. 2089 (UNSTARRED), answered on 2016-07-29
Subject: Violation of Companies Act
Ministry: CORPORATE AFFAIRS
Asked by: George Baker, LAKHAN LAL SAHU

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 2089 ANSWERED ON FRIDAY, THE 29 TH  JULY, 2016 [SHRAVANA 07, 1938 (SAKA)]

## VIOLATION OF COMPANIES ACT QUESTION

2089.   SHRI GEORGE BAKER: SHRI LAKHAN LAL SAHU:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether the Government has taken cognizance of the companies which have violated the provision of the Companies Act, 1956;
- (b) if  so,  the  details  thereof  during  the  last  three  years  and  the  current  year, State/UT-wise including Chhattisgarh and Maharashtra;
- (c) the number of the cases of violations which have been investigated and the number of those still pending;
- (d) whether any penalty has been imposed and recovered in the said cases; and
- (e) if so, the details thereof along with the number of cases wherein cases have been registered/ convictions has taken place?

## ANSWER

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

- (a) & (b) : The  State/  UT-wise  details  of  prosecutions  filed  by  the  Registrars  of Companies  for  violation  of  provisions  of  the  Companies  Act  are  enclosed  as Annexure-I.
- (c) : The Ministry has ordered investigations involving 360 companies during the last three years and current year through Serious Fraud Investigation Office (SFIO).  During this  period,  investigations  involving  154  companies  have  been  completed  and investigation  involving  226  companies  are  pending  (including  those  ordered  in previous years).
- (d) & (e) : During the last three years and current year, SFIO has filed complaints in different courts/fora. The year-wise break up is as under:-

|   Sl. No. | Year         |   No. of complaints filed |
|-----------|--------------|---------------------------|
|         1 | 2013-14      |                        94 |
|         2 | 2014-15      |                        86 |
|         3 | 2015-16      |                        53 |
|         4 | Current year |                        06 |

During this period, in respect of the cases filed by SFIO, conviction has been made in 45 cases wherein fine of approximately Rs.130.06 lakh has been imposed.  In four cases, directors of the company concerned have been sentenced to imprisonment for six months.

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## Annexure-I

## ANNEXURE REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE UNSTARRED QUESTION NO.2089 FOR ANSWER IN LOK SABHA ON 29.07.2016.

## DETAILS OF PROSECUTION FILED DURING THE LAST THREE YEARS AND CURRENT YEAR BY REGISTRARS OF COMPANIES

| Sl. No.   | State               | Year    | Year    | Year    | Year    |
|-----------|---------------------|---------|---------|---------|---------|
|           |                     | 2013-14 | 2014-15 | 2015-16 | 2016-17 |
| 1         | West Bengal         | 8791    | 1222    | 1514    | 0       |
| 2         | Orissa              | 949     | 400     | 20      | 4       |
| 3         | Bihar & Jharkhand   | 216     | 649     | 27      | 4       |
| 4         | Assam               | 53      | 31      | 11      | 2       |
| 5         | Meghalaya           | 2       | 1       | 2       | 1       |
| 6         | Tripura             | 1       | 0       | 0       | 0       |
| 7         | Nagaland            | 0       | 0       | 2       | 0       |
| 8         | Arunachal Pradesh   | 0       | 0       | 0       | 0       |
| 9         | Manipur             | 0       | 0       | 0       | 0       |
| 10        | Mizoram             | 0       | 0       | 0       | 0       |
| 11        | Tamil Nadu          | 329     | 311     | 35      | 30      |
| 12        | Kerala              | 585     | 0       | 02      | 0       |
| 13        | Puducherry          | 0       | 0       | 0       | 0       |
| 14        | Gujarat             | 178     | 45      | 18      | 84      |
| 15        | Madhya Pradesh      | 111     | 150     | 64      | 64      |
| 16        | Rajasthan           | 76      | 32      | 75      | 25      |
| 17        | Chhattisgarh        | 0       | 0       | 3       | 37      |
| 18        | Delhi               | 192     | 290     | 285     | 99      |
| 19        | Haryana             | 0       | 5       | 0       | 0       |
| 20        | Uttar Pradesh       | 111     | 114     | 44      | 7       |
| 21        | Himachal Pradesh    | 9       | 4       | 2       | 10      |
| 22        | Punjab & Chandigarh | 79      | 72      | 67      | 38      |
| 23        | J & K               | 0       | 0       | 0       | 2       |
| 24        | Uttarakhand         | 0       | 0       | 0       | 0       |
| 25        | Andhra Pradesh      | 19      | 10      | 31      | 4       |
| 26        | Karnataka           | 11      | 45      | 87      | 4       |
| 27        | Maharashtra         | 860     | 220     | 212     | 280     |
| 28        | Goa                 | 28      | 30      | 63      | 14      |
| Total     | Total               | 12600   | 3631    | 2564    | 709     |

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