RoC looking into complaints against S Kumars
The Serious Fraud Investigation Office has received complaints about alleged violation of corporate governance by the textile major
The Serious Fraud Investigation Office (SFIO) has received complaints about alleged violation of corporate governance and other norms by textile major S Kumars Nationwide and the matter is being examined by the Registrar of Companies, Ministry of Corporate Affairs said today.
The Office of RoC, Mumbai, is examining the reply from the company and any further action in this matter would be taken after receipt of its report, Minister of State for Corporate Affairs R P N Singh said in reply to the Rajya Sabha.
Asked whether SFIO has received any complaints regarding violations of corporate governance and "myriad transactions involving demergers etc" by S Kumars Nationwide Ltd (SKNL), the minister replied in affirmative.
"The complaint was taken up by the Office of the Registrar of Companies (RoC), Mumbai, who has reported that the reply of the company is under examination. Further action in the matter will be taken on the receipt of report from ROC Mumbai," Singh said.
The minister, however, said that SFIO itself is not investigating the issues related to misrepresentation in corporate reporting and violation of various sections of Companies Act by SKNL.
Provisions have been made in the Companies Bill, 2011 to given SFIO powers to investigate into the affairs of the company through a relevant clause.
An SKNL spokesperson said the company had received a letter from RoC, Mumbai asking for comments and clarifications on certain issues raised by an individual. "The matters raised by the individual are frivolous and baseless . The company has already replied in detail to the RoC. SKNL follows best practices in corporate governance and believes that its clarifications and stance will more than adequately address any issues raised and forwarded to the company. There is no other review being conducted by any government/regulatory authority with regard to this matter.”