The Hindu Business Line : Defying CLB order: Case filed against Morepen Labs

THE Registrar of Companies, Jalandhar, has prosecuted Dr. Morepen Laboratories for defying the Company Law Board's (CLB) order regarding non-payment to depositors. The case has been filed under Companies Act, 1956, the Minister of Company Affairs, Mr Prem Chand Gupta, informed the Lok Sabha on Friday.

According to the Minister, the company had defaulted in refunding matured deposits to investors along with interest to depositors. The company had filed an application under Section 58A(9) of the Companies Act, 1956 before the CLB detailing as to how it was to refund the deposits to the concerned persons. The CLB had ordered the company to make repayments of deposits as per the approved schedule.

However, it failed to comply with the same. For non-compliance with the CLB order a case was filed in the court of Chief Judicial Magistrate at Solan in Himachal Pradesh, the Minister added.

The Government has launched prosecutions against 109 vanishing companies and their directors. This follows efforts made by the task forces set up for the purpose.

The Minister informed the Lok Sabha in a written reply that prosecutions have also been initiated against 103 companies and their directors for non-filing of statutory returns under the relevant sections of the Company Act, 1956.

First information reports have been filed with the police against 87 companies and their directors for offences punishable under various sections of the Indian Panel Code.

The Coordination and Monitoring Committee (CMC) on vanishing companies, co-chaired by the Secretary, Ministry of Company Affairs, and Chairman, Securities and Exchange Board of India (SEBI), had set up four task forces to take legal action against vanishing companies.

These task forces are being headed by the four Regional Directors of the Ministry. Its other members are the representatives of Regional Offices of SEBI, relevant stock exchanges and the concerned Registrars of Companies, said the Minister.

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