Companies

IPL: Ministry orders prosecution of India Cements for co law non-compliance

Our Bureau New Delhi | Updated on January 27, 2018

The Corporate Affairs Ministry (MCA) has, in relation to Indian Premier League (IPL), issued instructions to launch prosecution on India Cements for non-compliance with certain provision of company law.

Also, the Registrar of Companies (RoC) has been instructed to file prosecution against GMR Sports Pvt Ltd for non-compliance with certain provisions of company law, the Corporate Affairs Minister Arun Jaitley informed the Lok Sabha in a written reply.

For GMR Sports, show cause notices have been issued to the company and its directors and reply is awaited, the Corporate Affairs Ministry has said.

Providing details of action initiated against erring companies related to IPL cricket league, Jaitley said that instructions have been issued on December 14 to launch prosecution against India Cement Ltd for contravention of Section 211 and to “examine certain other issues arising out of inspection and to submit report,”

Former BCCI chief N Srinivasan-led India Cements was the owner of suspended IPL team Chennai Super Kings.

Section 211 of the Companies Act, 1956 related to form and content of presentation of balance sheet and profit and loss account of a company.

In the past too, the Corporate Affairs Ministry had filed prosecution for contravention of Section 372A (7 counts) and Section 217(2A). These cases were compounded and prosecutions were withdrawn, the Lok Sabha was informed.

There was also an earlier instance of the Ministry noticing violation of Section 217 (2A) of the Companies Act 1956 relating to non-furnishing of particulars of employees in the Director’s report. The company was warned on this count.

Subsequently, inspection and re-inspection of books of account of India Cements Ltd were ordered under Section 209A of the Companies Act, 1956 on the basis of questionnaire of CBI relating to Jagan case, Jaitley said.

Jaitley also informed the lower house that prosecutions had been filed against KPH Dream Cricket Pvt Ltd and Knight Riders Sports Pvt Ltd for non-filing of balance sheet and violation of Sections 383 A and 211 of the Companies Act respectively. The companies concerned later compounded the said offences.

Published on December 20, 2015

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