No new case involving vanishing cos so far this year: Jaitley

Asserting that various steps have been taken to protect investor interests, the government today said no fresh case of fraud involving 'vanishing companies' had been reported so far this year.
The Corporate Affairs Ministry has already initiated action against 78 'vanishing companies' which together had raised more than Rs 310 crore from investors.
"No fresh cases involving 'vanishing companies' have come to the notice of the government during the current year," Minister of Corporate Affairs Arun Jaitley said in a written reply to the Lok Sabha.
The Minister also informed that FIRs (First Information Reports) have been lodged against 78 'vanishing companies' and their directors.

Additionally, Jaitley said, "prosecution have been filed against these companies and their promoters/directors under...The Companies Act, 1956 for non-filing of statutory returns and ...For mis-statement in prospectus/fraudulently inducing persons to invest money/false statements made in the offer documents etc".
The minister said a number of steps have been taken by the ministry to save investors from frauds.

These include mandatory requirement by company directors to obtain a "Director Identification Number" as well as instructions to the Registrar of Companies to scrutinise the balance sheet and other records of a company which raises money through public issues.
"There is a Coordination and Monitoring Committee in the Ministry of Corporate Affairs with representatives from the agencies concerned to take sock of measures taken to detect and deal with vanishing companies," Jaitley said.

Further, the government has also taken measures to sensitise investors through investor awareness programmes.
To a question on cases pending with the Company law Board (CLB) with regard to preferential issue of capital filed by various shareholders, Jaitley said that such share issues fell under provisions of Companies Act 2013 and for listed companies were regulated by Securities and Exchange Board of India (Sebi).
"These provisions do not require approval of CLB and as per the information furnished by the CLB, also no such cases are pending with the CLB," he said.