The Government has said that as and when any instance of wrong doing by any company comes to the notice, action is taken as per provisions of the Companies Act, 1956. In addition, the Ministry of Corporate Affairs has devised Early Warning System (EWS) based on the information available in MCA-21 System. Giving this information in written reply to a question in the Rajya Sabha, the Minister for Corporate Affairs, Shri Salman Khurshid, said that based on identified risk parameters, this system generates alerts in respect of unusual tendencies in financial statements. Based on these alerts, respective Registrars of Companies examine the concerned cases to find out irregularities, if any, and take action accordingly to law.

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  1. NB says:

    Hats off to Tira. T for the comments in all CAPS-especially the words: “THE SPECIALISED AND MERCILESS FIELD OF INVESTIGATION-A JOB ESSENTIALLY OF WAITING WITH PATIENCE WITHOUT ANY SO-CALLED LEGAL TIME-LIMIT AS PRESCRIBED UNDER VARIOUS ACTS ” which remind one of the best seller series on the BOURNE mysteries.

    Yes, real and purposeful investigation (of fraud or money laundering or fudging of accounts or siphoning of funds from the accounts or concealment of income)is indeed a game of waiting, of patient suffering, not bound by the deliberate and conscious restraints of the Act of Limitation-not unlike that of the days of the Cold War in the US-USSR camps, or in the merciless of spying (best known to the Madhuri Guptas of the IFS-B and her friends/cohorts from the armed forces/politicians/highest civil services). That this is denied to the officers of the departments investigating into the various frauds mentioned above is not due to any ignorance on the part of the generalist of the generalists and their political/pecuniary pay-masters (borrowing the phrases from some of the comments seen in this site) but really the result of deliberate, conscious and ill-intentioned ploy of those highest bureaucrats (the likes of the MI6 in Britain?)in the country to limit the process of investigation within the fetters of the Limitation Act!

    Nobody should take our IAS and the IPS (and their lesser brothers in the higher civil-All India services) for fools. Nothing they do is without a strategy to safeguard their vested intersts.

    In fact, intellectually thoroughly dishonest though, they are perhaps the best when it comes to the all-important issue of “SELF PRESERVATION” and protecting their financial interests.

  2. TIRA,T says:

    YES, MR. SAHU IS RIGHT ON THE POINT OF SHARING OF INFORMATION AND COORDINATION AMONG THE VARIOUS CENTRAL AND STATE AGENCIES IN THE FIELD OF INVESTIGATION.BUT WHAT IS THE PREVAILING SITUATION?

    THERE IS A MACHINERY CALLED THE CENTRAL ECONOMIC INFORMATION BUREAU (CEIB), TRADITIONALLY UNDER AN IRS FROM THE CENTRAL EXCISE/CUSTOMS DEPTT. (THE LOGIC BEING UNKNOWN), WITH ITS REGIONAL CENTRES UNDER THE DGIT (INVESTIGATION) AS HEADS. BUT THIS IS A TIME-WASTING, SELF-PROMOTING OFFICE, ACTUALLY BUSY HUSHING UP CASES AND NOT FOR CONTRIBUTING ANY POSITIVE INPUTS TO THE VAST DATABASE OF INFORMATION ON VARIOUS FRAUDS. THIS OFFICE IS MORE OF A DRAG ON THE CENTRAL EXCHEQUER. THEN THE RECENTLY OPENED SPIO, WITH THE RANK GENERALIST, I.E., THE IAS ON TOP, WHICH HAS NEITHER THE CAPABILITY NOR THE EXPERTISE IN THE SPECIALISED AND MERCILESS FIELD OF INVESTIGATION-A JOB ESSENTIALLY OF WAITING WITH PATIENCE WITHOUT ANY SO-CALLED LEGAL TIME-LIMIT AS PRESCRIBED UNDER VARIOUS ACTS TO SAFEGUARD THE INTERESTS OF THE RICH AND THE POWERFUL-WHICH DOES NOT CARE FOR THE NON-IAS SPECIALISTS. IT IS A VERY SUGGESTIVE INDICATOR OF THE REAL INTENT OF ANY GOVT. AT THE CENTRE, DEPENDENT ENTIRELY ON THE AGE-OLD FEUDAL STRUCTURE OF THE ICS-IAS-CSS NEXUS WITH POLITICIANS, WHICH HAS NOT YET CONSIDERED IT NECESSARY TO FRAME AND NOTIFY THE RULES UNDER THE BENAMI TRANSACTIONS (PROHIBITION) ACT, 1988 IN THE YEARS SINCE THE ACT WAS PASSED BY THE PARLIAMENT IN THE YEAR OF THE LORD 1988!

    THUS, THE FATE AND PLIGHT OF ANY MEANINGFUL AND HONEST INVESTIGATION AND REAL GOOD INVESTIGATORS IN THIS COUNTRY ARE MOST UNCERTAIN. WHAT, FOR INSTANCE, HAPPENED TO THOSE OFFICERS WHO INVESTIGATED THE MOST SENSITIVE INVESTIGATIONS SINCE THE DAYS AFTER THE EMERGENCY? A REALLY GOOD INVESTIGATOR IS ONE, ACCORDING TO ALL POLITICAL PARTIES AND THEIR COHORTS, I.E., THE ABOVE SAID IAS-CSS COTERIE, WHO CAN CLOSE AND HUSH UP THE MATTERS WHENEVER SO DESIRED BY THE BOSSES TO ENABLE THE POLITICAL BOSES TO MAKE DEALS WITH THEIR OPPONENTS/DIFFICULT CIVIL SERVANTS.

    THEREFORE, MR. SAHU MAY CERTAINLY ALSO BE AWARE OF THE BACKGROUND/NEFARIOUS ACTIVITIES OF MANY OF THE PAST PRESIDENTS OF THE ICAI WHO HAVE BECOME MOST POWERFUL AND INFLUENTIAL BY HELPING COVER UP FUDGED ACCOUNTS. EVEN PSUS’ ACCOUNTS ARE FUDGED REGULARLY FOR AGES! IN THIS SCENARIO, THE IDEA OF AN ACCOUNTING OVERSIGHT BOARD IS NOVEL, BUT THE RESULT WILL BE REPEATITION OF ALREADY CORRUPT BODIES FUNCTIONING TO THE BENEFIT OF THE RULING CLASS.

  3. CS SANJIB SAHU. says:

    Unless an accountig oversight board is constituted,fudging of accounts for doing away with public money would be a regular proposition in our country.As the much touted EWS availabe in MCA-21 would not serve any purpose in this regard.Rather,co-ordination amongst the govt. bodies like IT Deptt,Central excise Deptt,Sales Tax Deptt etc.with regard to sharing of information about an entity is a desired one in the present context.

  4. Tira.T says:

    We are not yet aware of any such warning bells having been heard by the common masses. We are, of course, aware of the fact that, very powerful and influential business houses control the corridors of power in the concerned ministry and own the allegiance of the civil servants who inform their “true” pay masters well in advance of any impending action by their legal and authorised pay-master, i.e., the Govt. which, in other words, means-they themselves! It is thus a very diabolically paradoxical and hilarious and also obnoxious situation, which serves the “intended purpose” of hoodwinking ordinary public and creating a make-believe scenario for the commoners-the guileless public.

    This is called the infamous “unholy alliance” between the two main stakeholders in the State, i.e., the ruling elite and their agents-the civil service.

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