Govt orders probe into accounts of 78 companies

Govt orders probe into accounts of 78 companies

New Delhi: The government has ordered probe into the books of accounts of 78 companies, including Essar Steel and Sasken Technologies, in the last eight months in keeping with the Companies Act provisions.

“Few companies have been found violating Sec 209 (A) of the Companies Act, which provides for the right of inspection by directors, registrars and members of the company," Union Minister of Corporate Affairs Prem Chand Gupta said in a written reply to the Lok Sabha.

“Legal action as warranted under law has been taken by filing prosecutions in the respective courts in cases where violation of Section 209 (A) is noticed on the basis of such inspections and the same is subjudice," he said.

During the last fiscal, the government had ordered inspection into the books of as many as 171 companies, including Suzlon Energy, Tata Tea, HCL Technologies, ITC, Godrej Industries, Emami Ltd, Usha Martin, Bata India, Binani Cement.

To an another query, Gupta said that a few cases have been filed under Section 63 and 68, which pertain to criminal liability for misrepresentation of information in prospectus and fraudulently inducing investors to invest money.

“In 2007-08, two cases were filed under Section 63 and 7," he said.