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There are 87 vanishing companies in the country on date, which are not filing their documents regularly or their directors are non-traceable.
Most of these, around 26, are from Gujarat. Some 13 of them have been registered in Andhra Pradesh, 10 in Tamil Nadu, nine in Maharashtra and four each in Delhi and Bihar among others.
“86 prosecutions under Section 63/68 and 628 of the Companies Act, 1956 for mis-statement in the prospectus, fraudulently inducing persons to invest money and for false statement etc were filed against the company and its directors,” said Mr R.P.N Singh, Minister of State for Corporate Affairs, in the Lok Sabha on Thursday.
Besides, 82 first information reports have been lodged with the police to trace the whereabouts of the companies and their directors, he added.
A total of 238 companies had been identified as vanishing, of which 119 have begun filing their returns with the Registrar of Companies regularly. Around 32 companies have gone into liquidation.
Companies which raise funds through initial public offer and do not maintain registered offices, fail to file statutory returns/listing requirements with the Registrar of Companies/stock exchange for two years or if their directors are non-traceable, are termed as vanishing companies.
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