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Corporate & Other Laws SICK Industrial Companies Act, 1985

  • Govt begins crackdown on vanishing companies
    Jun 23, 2011
    The ministry of corporate affairs (MCA) has directed the Serious Fraud Investigation Office (SFIO) to cull out details of directors of over 50 companies who have gone underground after raising funds from the public. The ministry's move is aimed at identifying promoters of vanishing companies and prosecute them under the Companies Act. According to sources, the government wants to not only apprehend the "invisible" promoters but also set a precedent for future cases. "The SFIO has been intimated of the move. The list of vanishing companies comes to over 100. The mandate is with the ministry to identify the promoters,” an MCA official told FE. He said the task would be an arduous one. It could take some years for the investigating agency of MCA to pin down the promoters of such firms.
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