Cases of Corporate Frauds/Chit Fund Scams Involving Companies
The Ministry, during the last three years and current year, has ordered investigation into the affairs of 145 companies which were allegedly involved in illegal deposit taking activities. A State-wise list of these companies is enclosed as Annexure. In many of the cases where investigations have been completed, diversion of funds so collected and/ or default by the companies in repayment of such deposits has been observed.
Regulation of such activities is covered by the following statutes:
i. Chit Funds Act, 1982, under which all chit funds require previous sanction from the respective State Governments.
ii. Prize Chits & Money Circulation Schemes (Banning) Act, 1978, enforcement of which lies with State Governments, defines and prohibits illegal chit fund schemes.
iii. RBI Act, 1934, administered by the Reserve Bank of India, bars any individual or a firm or unincorporated association of individuals from accepting deposits.
iv. SEBI Act, 1992, administered by the Securities and Exchange Board of India, to regulate Collective Investment Schemes.
v. Companies Act, 2013 (Sections 73 to 76) read with Companies (Acceptance of Deposit) Rules, 2014.
vi. Special legislations passed by certain States to protect the interests of depositors.
Apart from enforcement of the above statutes and regulations, the following measures have been taken to protect the interests of the investors and to enable effective investigation into the affairs of companies allegedly involved in frauds:
(i) ‘Fraud’ has been defined as a substantive offence in the Companies Act, 2013;
(ii) Section 143(12) of Companies Act, 2013 requires the auditor of a company to report any fraud to the Board of Directors or Audit Committee of that company or to the Central Government, depending on the amount of fraud.
LIST OF INVESTIGATION ORDERED IN RESPECT OF COMPANIES INDULGING IN ILLEGAL COLLECTION OF DEPOSITS
Year – 2012-13
|Name of the Company||State/ UT||Suspected Quantum|
|1.||Basil International Ltd.
Vamshi Chemicals Ltd.
Nixil Pharmaceuticals Specialities Ltd.
Appeline Cosmetics & Toiletries Ltd.
Basil Express Ltd.
|Delhi & UP||Rs 1721.00 crore|
|6.||Abcindya Networks Pvt. Ltd.||Delhi||Rs 48.00 crore|
|7.||Unigateway 2U Trading Pvt. Ltd.;
Unipay2U Marketing Pvt. Ltd;
Unipay Creative Business Pvt. Ltd.;
Unipay2U Production Pvt. Ltd.
|Tamil Nadu||Rs 791.53 crore|
|11.||Life Business Project Pvt. Ltd.||Delhi||Not available|
|12.||Alchemist Infra Realty Ltd.||Delhi||Not available|
|13.||Speakasia Online Pte Ltd. (Singapore)||
|Rs 3494.00 crore|
|14.||Tulsiyat Tek Pvt. Ltd.|
|15.||Seamless Outsourcing LLP|
Year – 2013-14
|16.||Rose Valley Real Estate & Construction Ltd.
Rose Valley Industries Ltd.
Silver Valley Communications Ltd.
Rose Valley Food Beverages Ltd.
Rose Valley Marketing India Ltd.
Rose Valley Infotech Pvt. Ltd.
Rose Valley Hotels & Entertainment Ltd.
Rose Valley Projects Ltd.
Rose Valley Patrika Ltd.
Rose Valley Films Ltd.
Modern Investment Traders Pvt. Ltd
Rose Valley Travels Pvt. Ltd.
Brand Value Communications Ltd.
Rose Valley Housing Development Finance Corporation Ltd.
Rose Valley Airlines Ltd.
Rose Valley Fashions Pvt. Ltd.
Rupasi Bangla Projects India Ltd.
Rupasi Bangla Media & Entertainment Ltd.
Rose Valley Realcom Ltd.
|West Bengal||Rs 10281.00 crore|
|35.||Icore E-services Ltd.
Icore Apparels Pvt. Ltd.
Icore Paints Pvt. Ltd.
Icore Iron & Steel Pvt. Ltd.
Icore Super Cements Pvt. Ltd.
Riju Cement Ltd.
Mega Mould India Ltd.
Icore Global Medicines Pvt. Ltd.
Icore Jewellery & Gems Pvt. Ltd.
Icore Polyfab Pvt. Ltd.
Icore Housing Finance Corpn. Ltd.
|West Bengal||Not available|
|47.||Saradha Realty India Ltd.
Saradha Agro Development Ltd.
Saradha Exports Ltd.
Saradha Shopping Mall Pvt. Ltd.
Saradha Printing & Publication Pvt. Ltd.
Saradha Tours & Travels Pvt. Ltd.
Saradha Education Enterprise Ltd.
Saradha Construction Company Pvt. Ltd.
Saradha Garden Resorts & Hotel Pvt. Ltd.
Saradha Landmark Cement Pvt. Ltd.
Rose Capital Ltd.
Bengal Media Pvt. Ltd.
Bhasank Food Pvt. Ltd.
Global Automobiles Ltd.
|West Bengal||Rs 2394.00 crore|
|61.||Sunshine India Land Developers Ltd.
Sunshine Mutual Benefit Ltd.
Sunshine Land Projects Ltd.
Sahu Investment Mutual Benefit Company Ltd.
Sahu Investment Corporation Ltd.
Nirmala Sahu Business Complex Pvt. Ltd.
Shiv Nests Pvt. Ltd.
Synergy Tie-Up Pvt. Ltd.
Nirmala Dwellings Pvt. Ltd.
|West Bengal||Rs 30.00 crore|
|70.||URO Infra Reality India Ltd.||West Bengal||Not available|
|71.||URO Hotels and Resorts India Ltd.|
|72.||URO Hygienic Foods Ltd.|
|73.||URO Infotech Ltd.|
|74.||URO Lifecare Ltd.|
|75.||URO Trexim Ltd.|
|76.||URO Autotech Ltd.|
|77.||URO Agro India Ltd.|
|78.||URO Walkers Ltd.|
Year – 2014-15
|79.||Mangalam Agro Products Ltd.||West Bengal||Not available|
|80.||Ramel Industries Ltd.
Gan Laboratory Pvt. Ltd.
Ramel Mart Pvt. Ltd.
Ramel Media and Advertising Pvt. Ltd.
Ramel Real Estate and Infrastructure Ltd.
Ramel Sea Food Ltd.
Tamanna IT Solutions Ltd.
Ramel Pharma Ltd.
Ramel Hospitality Pvt. Ltd.
Ramel Infotech Pvt. Ltd.
Ramel Agrotech Ltd.
Ramel Hotel & Resorts Pvt. Ltd.
Ramel Impex Pvt. Ltd.
Ramel Insurance Agency Pvt. Ltd.
Cygnus Publishers Ltd.
Ramel Bio Fertilizer Pvt. Ltd.
|West Bengal||Not available|
|96.||Rahul Hi Rise Ltd||West Bengal||Not available|
|97.||Shrishti Abha Food & Beverage Pvt. Ltd.|
|98.||Rahull Media & Entertainment Ltd.|
|99.||Rahul Wood Works Pvt. Ltd.|
|100.||Veekayen Properties Pvt. Ltd.|
|101.||Hotel Sea-Coast Pvt. Ltd.|
|102.||Rahul Bhumi Vikas Ltd.|
|103.||Rahul Heights Ltd.|
|104.||Rahul Real Estate Projects Ltd.|
|105.||Rahul Inn Hospitality Ltd.|
|106.||Ideas Realcon Ltd.|
|107.||Ideas Real Estate Ltd.|
|108.||Ideas Healthcare Ltd.|
|109.||Ideas Broking Ltd.|
|110.||Zenix Technologies Pvt. Ltd.|
|111.||Adventus Creations PVt. Ltd.|
|112.||Seashore Securities Ltd.||Odisha||Not available|
|113.||Seashore Agriculture Promotion Company Pvt. Ltd.|
|114.||Seashore Healthcare Pvt. Ltd.|
|115.||Seashore Pharmaceuticals Pvt. Ltd.|
|116.||Seashore Courier & Cargo Private Ltd.|
|117.||Seashore Diary Products Pvt. Ltd|
|118.||Seashore Portfolio Management Services Ltd.|
|119.||Seashore Consultancy & Construction Private Ltd.|
|120.||Falcon Consultancy Private Limited|
|121.||Royal Purple Hotels Private Limited|
|122.||Sagiarien Systems Private Ltd|
|123.||Florance Biotech Private Limited|
|124.||Saubhagya Drinks Private Limited|
|125.||Sri Krishna Agriculture Pvt. Ltd.|
|126.||Jatish Agro and Oil Products Pvt. Ltd.|
|127.||Sagar Media & Entertainment Pvt. Ltd.|
|128.||Seashore Capital Pvt. Ltd.|
|129.||Seashore Shipping Company Pvt. Ltd.|
Year – 2015-16
|130.||Saradha Housing Pvt. Ltd.||West Bengal||Not available|
|131.||Ambujaatripuri Infra (India) Ltd.||Odisha||Not available|
|132.||Ambujaatripuri Business Private Ltd.|
|133.||Artha Tatwa Consultancy Private Ltd.|
|134.||Artha Tatwa World Ventures Private Ltd.|
|135.||Artha Tatwa Food Mart Private Ltd.|
|136.||Artha Tatwa Capital Limited|
|137.||Ambujaatripuri Engineering Private Limited|
|138.||Orisha Health & Medical Research Institute|
|139.||Helios and Matheson Information Technologies Ltd.||Tamil Nadu||Not available|
|140.||Grand Vyapaar Private Ltd.||West Bengal||Not available|
|141.||Ultra Tie-up Pvt. Ltd.|
|142.||Happy Tie-up Ltd.|
|143.||Saphire Infradeveloper Pvt. Ltd.|
|144.||Best Tie-up Ltd.|
|145.||Sahu Land Developers Pvt. Ltd.|
This information was given by Shri Arun Jaitley, Minister of Corporate Affairs in written reply to a question in the Lok Sabha today.
Do you think CBDT should extend Tax Audit Report and relevant ITR Due Date? Please Comment, Vote, Retweet and Like.— Tax Guru (@taxguru_in) September 18, 2018