New Delhi: The Assistant Registrar of Companies under the ministry of corporate affairs (MCA) has issued summons to the directors and officers of Usha Martin Limited which had sold its steel business to Tata Steel.
The summons, issued under section 207(3) of the Companies Act, 2013 on Monday, asked the directors and officers of the company to appear personally before the Assistant Registrar of Companies (West Bengal) on Friday.
According to the summons, notices were issued u/s 206 of Companies Act in respect of Usha Martin, and an inquiry was instructed to be conducted corresponding to the complaints of Basant Kumar Jhawar against the company.
Usha Martin later filed its reply in later part of October last year.
The present management under Rajeev Jhawar could not be contacted for his comments.
The directors and officers who have been summoned were Prashant Jhawar, Rajeev Jhawar, Brij Kishore Jhawar, Basant Kumar Jhawar, G N Bajpai and Partha Sarathi Bhattacharya among others.
The ministry had asked for all the minute books of board meeting and annual general meetings relating to the issues mentioned in the complaints for the last five years.
Facing huge losses, the management of Usha Martin under Rajeev Jhawar decided to sell the steel business to Tata Steel and said the proceeds would be used to retire debt.
Usha Martin would stick to its wire rope business after exiting from steel.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.