By Our Correspondent
NEW DELHI: The Ministry of Corporate Affairs (MCA) has information of the companies which have violated the provisions of Company Law. This was stated by Anurag Singh Thakur, Union Minister of State for Finance & Corporate Affairs, in response to a written question in the Lok Sabha on Monday.
MCA either directly or through Regional Directors (RDs)/ Registrar of Companies (ROCs) receive complaints against companies from public (Individual/entities), from other Ministries etc., which are examined and action is taken as per the provisions of the Companies Act, 2013 which includes ordering and conducting Inquiries, Inspections or Investigations in terms of section 206(1),(4),(5), section 210 and section 212 of the Companies Act, 2013 respectively as the case may be on merits of each case in complaints of such nature involving fraud which require multi-disciplinary action, where large public interest and huge money transactions are involved are assigned to the Serious Fraud Investigation Office (SFIO) by the MCA.
Thakur said that the reasons for ordering Inquiries/Inspections/Investigations varies from case to case such as frauds, non-compliance of the provisions of the Companies Act, non-refund of deposit received from public under the Companies Act, complaints received from other Ministries, Forwarding the complaints filed by the banks on borrowings by the companies and on the basis of orders of Hon’ble Court/Tribunal.There are 660 number of cases in which enquiry has been conducted. Based on the findings, prosecutions are filed under the provisions of the Companies Act, 2013, the Minister said.
The Ministry of Corporate Affairs has taken steps to provide several incentives/, relaxation/concession during Lockdown period so as to reduce the burden of companies/LLPs during COVID-19. Enumerating the steps, Thakur stated the following:Introducing Companies Fresh Start Scheme 2020 (CFSS) vide General Circular 12/2020 dated 30.03.2020 to enable companies to file documents without additional fees, grating immunity from prosecutions proceeding, etc.Introducing LLP Settlement Scheme, 2020 providing similar benefits as CFSS 2020 for the benefits of LLPs.Introducing Special Provisions for enabling conduct of Board and General Meetings through Video conferences by Corporates vide General Circular No 14/2020.Introducing Special provisions for filings under section 124 &125 r/w IEPFA (Accounting, Audit, Transfer and Refund) Rules 2016.
Introducing Special Relaxation in holding of General Meeting by Companies whose Financial Year ended on 31st December 2019 vide General Circular dated 21-04-2020 and holding it through Video conferences vide General Circular No. 20/2020 and 28/2020. Allowing corporates for spending CSR funds for various activities which includes Healthcare, sanitation and disaster management.
A general extension of 3 months to hold Annual General Meeting for the Financial year 2019-2020 beyond 30.09.2020 has been granted to all about 12 lakhs companies by issue of order by each ROC on 08.09.2020 without any requirement to file any application of the form and without payment of fee.
