The ministry of corporate affairs has decided to launch prosecution proceedings against India Cements. Former BCCI chief N. Srinivasan-led India Cements was the owner of suspended IPL team Chennai Super Kings.
Corporate affairs minister Arun Jaitley told the Lok Sabha in a written reply that instructions have been issued to start prosecution against India Cements for violating a provision of the Companies Act.
The ministry has issued instructions “to launch prosecution for contravention of Section 211 on 14 December, 2015 and to examine certain other issues arising out of inspection and to submit report,” Jaitley said in a written reply.
Section 211 of the Companies Act, 1956 pertain to balance sheet and profit and loss account. According to Jaitley, non-furnishing of employees’ particulars in the director’s report (under Section 217A) was also noticed and India Cements was warned.
“Subsequently, inspection and re-inspection of books of account of India Cements Ltd were ordered under Section 209A of the Companies Act, 1956 on the basis of questionnaire of CBI relating to Jagan case,” he noted.
Besides, prosecutions were filed for contravention of Section 372A on seven counts and for violating Section 217(2A). These were compounded and prosecutions were withdrawn in respect of the above cases, the minister said.
Section 372 pertains to purchase of shares. Meanwhile, the Registrar of Companies (RoC) has been instructed to file prosecution against GMR Sports Pvt Ltd—that owns Delhi Daredevils, Jaitley said. This is for violations related to Section 211 and accounting standard.
Show cause notices have been issued to the company and its directors and the reply is awaited, he said. As per the written reply, no contravention of Companies Act, 1956, were noticed in the cases of Royal Challengers Sports Pvt Ltd, Deccan Chargers Sporting Ventures Ltd and Sahara Adventure Sports Ltd.
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