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AP House to discuss Vashishta Wahan
Our Bureau
Hyderabad
,
Oct. 5
THE Andhra Pradesh Legislative Assembly has agreed to discuss the controversial Vashishta Wahan Company, a special purpose vehicle (SPV) created by the India project team leader of the German automotive major Volkswagen AG.
This follows a question raised by members of the State Assembly here on Wednesday seeking certain clarifications on this issue and wanting to know whether rules were flouted in the release of funds for the bogus firm.
Responding to queries posed by the Telugu Desam member, Mr P. Keshav, the State Industries Minister, Dr J. Geetha Reddy, said as per Section 149 of the Companies Act, 1956, certificate of commencement is not required to be obtained by a private company.
She clarified that transactions made with the company were legal as a private limited company. It can commence its operations from the date of incorporation and accept investments in equity from that date.
The members wanted to know the regulations under which the State Government had made investment in the shares of this private company in haste, when the provisions of the Companies Act prohibit a private limited company to raise funds. With members from other political parties too demanding an elaborate discussion to clear the air surrounding the special purpose vehicle, it was agreed to hold a detailed discussion later during the session.
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