Govt directs RoCs to collect details on IPL franchises

Government on Tuesday directed the RoCs to collect all details on IPL franchises, the bidding process and the sweat equity even as Salman Khurshid said his ministry would not like to "rush in" with an inquiry.

Updated: Apr 21, 2010, 00:08 AM IST

New Delhi: Government on Tuesday directed the
Registrar of Companies (RoCs) to collect all details on IPL
franchises, the bidding process and the sweat equity even as
Minister for Corporate Affairs Salman Khurshid said his
ministry would not like to "rush in" with an inquiry which
looks "untidy".

"I only know what the Finance Minister said in
Parliament that he will ensure action against everybody, who
has committed any wrong in the matter, and get the matter
thoroughly investigated by concerned agencies. If something
comes out from this action, which has any relation to company
affairs, then it will come to us and we will take whatever
action that is required only then," he said.

Khurshid said "we can`t just make a roaming inquiry
that looks untidy ... (We) can`t rush in ... The FM has made
it clear that a transparent inquiry will be done. Let the
world know what it is all about. If there are irregularities,
let those be accounted for. It is an assurance by FM in
Parliament. I cannot improve upon it ... We will do what is

"We certainly don`t like harassing people ... RoCs
keep an eye on the companies. They will notice if there is
something wrong. We have an early warning system in place.
Let`s see if any of these companies fall within that system`s
parameters which puts them under high risk category of
companies," Khurshid said later in the day while speaking to
a private new channel.

The minister said "We will take action if there is any
complaint related to company affairs i.e. if somebody has not
filed the balance sheet or appointed directors in a wrong

He said details of all registered companies are
available on the ministry`s website. "The problem actually
arises if ground reality (about companies) is different (from
what details they have filed). Something must trigger off
investigations into that," Khurshid said.

Since the questions being raised about IPL so far
relate to only money transaction, they are being investigated
by the Registrar of Companies and Enforcement Directorate, he

"We will come in the picture if something related to
company affairs comes out in their investigation. It`s not
that we are sitting here waiting for an opportunity to get a
prey and hunt on it. Our job is to ensure that law is
practised ... if we come to know that any step related to
corporate law has been taken which makes our intervention
necessary, then we will see it," Khurshid said.

"The ministry could do some due diligence to see that
our records are in order... We will have to wait for a trigger
to get things moving," Khurshid said.

On being asked to comment on the high profile people
connected with the controversy, the minister said, "these are
public figures associated with cricket and BCCI. If there are
public figures then all kinds of things will be said. It is a
bit unfair to pin down somebody unless there is authentic
information (about anybody)."

Khurshid said "people may have interests and
investments (in IPL), but that does not take it to some level
of illegality ... You may or may not want to disclose
something you have, but it does not mean its illegal. We
should be careful and cautious as reputations are involved.

There are senior people, they may just be innocently
involved with cricket.

...It is a bit unfair. We have agencies and regulators
that can unearth ... we should wait for that ... I don`t think
anybody would be interested in covering up. It would be
inadvisable to do so".