MCA launches prosecution against 241 companies in three years

The Ministry of Corporate Affairs launched prosecution proceedings against 241 companies with regard to investor complaints in the last three financial years.
"Prosecution related to investors' complaints has been launched against 73 companies in 2012-13, 66 companies in 2013-14 and 102 companies in 2014-15," Corporate Affairs Minister Arun Jaitley said in a written reply to the Lok Sabha.
He said complaints received from investors in the ministry and its field offices are forwarded to the companies concerned for remedial action.
"In case the company fails to redress the grievance of the complainant and/or is found to be in violation of the provisions of the Companies Act, suitable action under the provisions of the Companies Act, 2013/1956 is initiated," the minister said.

According to him, cases involving serious fraud are sent to SFIO without any undue delay.
In the last three financial years, as many as 195 cases were sent to the Serious Fraud Investigation Office (SFIO) and during that period, 194 prosecutions were filed, according to another written reply.

The corporate affairs ministry implements the Companies Act.
To another question about remuneration, Jaitley said that as far as those below board-level employees of companies are concerned, whether Indian or foreign, their salaries are not regulated under the Act.
"The remuneration payable by a company at the board level is governed by Section 197 of the Companies Act, 2013, read with rules framed thereunder which do not discriminate between managerial personnel, whether Indian or foreign," he noted.

Jaitley, in a separate written reply, said there is no plan to include the Company Law Board under e-courts as CLB would be dissolved once the National Company Law Tribunal is set up.