SFIO says Elder Pharma violated Companies Act

SFIO says Elder Pharma violated Companies Act
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First Published: Sat, Sep 12 2009. 12 53 AM IST
Updated: Sat, Sep 12 2009. 12 53 AM IST
New Delhi: Elder Pharmaceuticals Ltd has violated the provisions of the Companies Act and the Indian Penal Code (IPC), according to the final investigation report submitted by the Serious Frauds Investigation Office, or SFIO, to the government, people familiar with the matter said.
The ministry of corporate affairs (MCA) had ordered an investigation into the affairs of Elder Pharma last year, on suspicion of alleged balance-sheet manipulation and siphoning off funds following some income-tax disclosures by the company.
MCA has now issued a notice to Elder Pharma on the basis of the report, seeking replies on the alleged violations of the Companies Act, the people said on condition of anonymity.
The ministry is also studying the IPC violations and may initiate prosecution proceedings on the basis of the recommendations, they said.
The Mumbai-based Elder Pharma said it has provided the investigating agency the information it sought.
The company also confirmed the receipt of a show-cause notice and said they were working on compounding the offences.
Elder Pharma denied any information on any violations under IPC.
cnbcvt18@livemint.com
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First Published: Sat, Sep 12 2009. 12 53 AM IST