New Delhi: Government has found 87 companies which vanished after raising funds and a majority of these were registered in the state of Gujarat.
In a written reply to the Lok Sabha, Corporate Affairs Minister Sachin Pilot said that FIRs have been lodged with police against all 87 companies and their directors to trace their whereabouts and to take action against these firms.
"Prosecutions have been filed against these firms and their promoters/directors under Companies Act ... For non-filing of statuory returns ,... For inducing persons to invest money/false statements made in the offer documents, etc," he said.
"Presently, there are 87 companies falling under the category of 'vanishing companies'," Pilot said.
The entities are classified as 'vanishing companies' if they cease to file their balance sheets and other documents after raising capital and the whereabouts of their offices or directors become untraceable.
Giving details of the steps taken by the government to check such incidents, Pilot said that instructions have been issued to the Registrar of Companies to scrutinise the balance sheets and other records of the companies which raised money through public issue so as to monitor the utilisation of such funds.
As per the state-wise list, 26 companies out of the total 87 such untraceable firms were registered in Gujarat.
Gujarat is followed by Andhra Pradesh (13), Tamil Nadu (10), Maharashtra (9), Delhi (5), West Bengal (5), Madhya Pradesh (5), and Uttar Pradesh (4) for such companies.
Among others include, four companies each in Madhya Pradesh amd Bihar and two in Chandigarh.
First Published: Thursday, August 8, 2013, 18:34