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78 companies vanish after raising funds

They have raised Rs 312 crore from investors, with Gujarat having the maximum number of 17 such entities

Press Trust of India  |  New Delhi 

Only major firms relishing masala bonds

As many as 78 are untraceable after having raised Rs 312 crore from investors, with having the maximum number of 17 such entities, was informed on Friday.

These entities are, among others, from Tamil Nadu, Maharashtra, Madhya Pradesh, West Bengal, Uttar Pradesh, and Punjab.

Vanishing are those that fail to file documents and balance sheets after raising funds through public issues and are untraceable.

Cumulatively, these 78 vanishing have raised about Rs 312 crore. Gujarat, at 17, has the maximum number of such firms.

Other such include 13 in Andhra Pradesh, 10 in and 9 in Maharashtra. Besides, West Bengal, and have 5 vanishing firms each.

A total of 238 were initially identified by the Ministry of Corporate Affairs as 'vanishing companies', which raised money through public issues, Minister of State for Corporate Affairs Arjun Ram Meghwal said in a written reply to the Lok Sabha.

Of these, 160 have been deleted from the list as they were subsequently traced. Presently, only 78 remain untraced.

Besides, the ministry has ordered probe into the affairs of 185 through Serious Fraud Investigation Office (SFIO) in more than three financial years. This includes 24 firms in the current fiscal.

These firms were allegedly running illegal chit-fund, ponzi and multi-level marketing entities. Also, they were involved in unauthorised collection of funds from the public, Meghwal said.

First Published: Fri, December 02 2016. 16:28 IST