ACTION AGAINST FRAUD COMPANIES
Two hundred twenty-nine
companies are reported to have disappeared after mobilizing money
from public through capital market. Prosecutions have been launched
against 135 companies, and against 33 companies police complaints
have also been filed. A Monitoring and Coordination Committee,
co-chaired by Chairman, Securities and Exchange Board of India
(SEBI) and Secretary, Department of Company Affairs has been set
up to oversee action against vanishing companies
There is no provision
in the Companies Act for "recovering" money collected
by companies through public issue.
This information
was given by the Union Minister of Law, Justice and Company Affairs,
Shri Arun Jaitley in a written reply to a question from S/Shri
Kapil Sibal and Ram Jethmalani in the Rajya Sabha today.
