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Thursday, Jan 29, 2004

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DCA taps merchant bankers to nab `vanished cos' promoters

Our Bureau

Coimbatore , Jan. 28

THE Department of Company Affairs (DCA), which has legally proceeded against companies that vanished after collecting public money through initial public offering (IPO), is working through the merchant bankers who helped out these IPOs for identifying the promoters of these companies.

"We are trying to collect the information through the merchant banking companies and other Government agencies which would help identify the directors of the vanished companies involved in the IPOs," said Mr Samir Biswas, Regional Director of the DCA, Chennai.

He added that the list of vanishing companies in the southern region of the DCA contained 48 companies, of which the names of 12 were deleted. As for the remaining 36 companies, action has been initiated under various sections of the Companies Act against the promoters.

According to Mr V. Selvaraj, Registrar of Companies, Coimbatore, seven companies from the Coimbatore region came under the list of vanished companies which involved raising capital from the public through IPOs to the tune of Rs 18.71 crore.

The DCA has filed FIRs against these companies. Orders of liquidation have been passed by the Madras High Court against three companies - Denmur Fax Roll Ltd, Poppillion Exports Ltd and Global Properties.

The other `vanished' companies from Coimbatore are Navakarai Spinners Ltd, Shyam Prints and Publishers Ltd, AVR Securities and Global Bloom (India) Ltd.

With regard to the simplified exit plan (SEP) introduced by the DCA for companies seeking to get their names deleted from the books of the Registrar of Companies (RoC) as wound-up or defunct, Mr Biswas said that the total number of applications stood at 2,000 including 425 from Coimbatore region.

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DCA taps merchant bankers to nab `vanished cos' promoters

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