The Government has informed Lok Sabha that a Coordination and Monitoring Committee (CMC), co- chaired by Secretary, Ministry of Corporate Affairs and Chairman, Securities and Exchange Board of India (SEBI) has been set up to look into issues relating to companies that had come out with public issues and vanished and to monitor the progress of action taken against such vanishing companies and their promoters. Specific criteria have been adopted by CMC for identification of such vanishing companies.
In reply to a question Shri Salman Khirshid, Minister for Corporate Affairs, informed the House that out of the companies that came out with Initial Public Offer (IPO) during 1992 to 2005, a total of 238 companies were identified as vanishing companies. With the continuous efforts of the Ministry/ CMC, 117 companies have been traced back, resulting in the number of vanishing companies being reduced to 121. Prosecutions have been filed against 112 vanishing companies and their promoters/directors under various provisions of the Companies Act, 1956 and First Information Reports (FIRs) have also been filed against Promoters/ Directors of 112 vanishing companies under Indian Penal Code (IPC). 35 directors were arrested and later released on bail. The House was informed that the field offices are pursuing the prosecution cases in the respective courts.
What TDS comments is substantially correct, but will the powers that be, along with politicians of all p[arties alike trying to keep the IAS and IPS always happy and having an obsession for them, pay heed to this? Our main problem in every respect originates in and from the BABUDOM-from the PM down to the youngest and the puny village-level political aspirant knows that it is those blue-collared people and their subordinates who must always be kept in good humour and share the loot with them, as the loot itself cannot be done/retained without their connivanve/active help. Thus has come a new “permanent settlement” of this CLASS of bureaucrats against whom (as a distinct elite class) even the Leftists and the mass-leaders of the DALITs are conspicuously silent. Slightly lower down the scale, one wnders as to how the same set of people continue, even after retirement, in the personal staff of ministers belonging to different parties of different poles. As a result, this permanent class of “permanent Staff” wit any minister are out of bounds of the CBI, CVC, etc. and if an enquiry is made into the “vanishing companies” of these people and the NGOs rum by their wives/wives of their IAS bosses (ministers and politicians have the birthright to run NGOs in thousands, even fodder scam will appear to be insignificant.
What I want to emphasise is that, this Committee is merely an eyewash to hoodwink the people and to safeguard the interests of the people in power but involved.
NOTHING WILL HAPPEN. QED.
The Committee should have retired IRS (Direct Tax) officers, who have once done a lot of work in thid field, as (voluntary) members, unless it is meant only for the IAS to be in the Committee or to appoint their henchmen. The racket of “vanishing companies” is a very old practice, indulged in even by outwardly respectable industrial houses/newspaper magnates, and politicians/bureaucrats, with mainly ITPs and some unscrupulous CAs and Advocates, in collusion with the ROCs/their officials as well as high officials of the Ministry of Co. Affairs, etc.,is still in vogue to funnel black money into accounted channels/hawalas/benami transactions/name lending, etc.
It is the tax department which can do a lot in this respect.
In case IRS officers known for their expertise in investigation and with real experience in unearthing refund frauds, etc., are not acceptable as members. the proposed Committee should at least invite through advts. their opinions/experiences.
What happened to the bogus companies found by the IT deptt. over the decades-in connection with bogus/false IT files opened for name lending purposes? The ROCs have been extremely non-cooperative in assisting in IT inquiries standing on status! This is reportedly still existing. Unfortunately, even in a specialised deptt/ministry of co. affairs, an IAS alone must be all in all-never having opened a page of mercantile laws, beginning with the Cos Act !!!