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Our Bureau

New Delhi , May 5

THE Ministry of Company Affairs has directed its Regional Directors to motivate NGOs involved in investor protection to lodge their complaints with the investigating agencies for remedial action against the vanishing companies.

One of the constraints being faced by the investigating agencies is the lack of interest on the part of individual investors, investor associations, NGOs, and voluntary organisations active in this field, an official release said.

"They do not come forward with the specific complaints against the fraudulent companies and their promoters/directors who have vanished after raising money through public issues." Cracking the whip on the vanishing companies and their promoters, the Gujarat police has registered FIRs in all 27 cases filed with it.

According to an official statement, a number of promoters and directors of these companies have been arrested.

Early last month, two directors/promoters of Frontline Financial Services Ltd were arrested. FIRs have been registered against them.

In the same month, one promoter/director of Kome-on Communication Ltd was also arrested. Further, two promoters/directors of Lyons Industrial Enterprises Ltd. were arrested on May 2.

The police took into custody in September-October last year four directors/promoters of Shreeji Dye-chem Ltd.

Likewise, four directors/promoters of Kesar Greenfield were arrested on different dates between September and December 2004.

All the four promoters/directors of Protech Circuit Breakers were taken into custody on different dates during 2003-04.

Chargesheets have been filed against all the four promoters/directors of Tirth Plastic Ltd.

The Ministry expects that the action taken by the Gujarat police would not only bring the guilty to book but have a deterrent effect on unscrupulous promoters /directors.

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