March 14, 2002

    The Department of Company Affairs has taken necessary action against M/s Sunair Hotels Ltd., on the basis of findings in the Inspection Report and have launched prosecutions against the company and/ or its officers in default for violation of Sections 77, 211 and 212 of the Companies Act, 1956. The offences under Section 211 and 212 have, however, been compounded by the Company Law Board, New Delhi on application of the company. Prosecutions for violation of Section 77 are still pending in the court of Additional Chief Metropolitan Magistrate and the same is fixed for hearing on April 15, 2002. Further, for violation of the provisions of Section 299 of the Act, the directors of the company have moved an application under Section 621A of the Companies Act for compounding of the offence and the same has since been compounded by Company Law Board, New Delhi.