Govt may move SC over RoC chief's appointment

The Union ministry of corporate affairs is likely to approach the Supreme Court for permission to appoint a new central administrative head for offices of the registrar of companies (RoC) spread across the country.

The move comes against the backdrop of an interim ruling by the Calcutta High Court, upholding a decision of the Central Administrative Tribunal (CAT) to quash the selection and appointment of director general, corporate affairs, on a complaint made by another claimant for the post. The ministry had sought a stay on the CAT decision from the high court.

“The ministry has got legal opinion that it should file a writ in the Supreme Court against the interim order,” a ministry official said.

RoC, appointed under Section 609 of the Companies Act, covering the various states and union territories, is vested with the primary duty of registering companies floated in their respective areas of jurisdiction, and ensuring such companies comply with statutory requirements under the Act. These offices function as registry of records relating to the companies registered with them, available for inspection by citizens on payment of the prescribed fee.

Currently, all RoC report to one of four regional offices, at Kolkata, Chennai, Noida and Mumbai. The regional directors, in turn, report to the ministry. The ministry wanted its field wing to function as an independent entity and keep away from its day to day functioning by creating the apex office, of the DG, Corporate Affairs.

The streamlining was felt to be necessary for the effective monitoring of simultaneous actions and information gathering on registered companies that are suspected of foul play.