Govt to launch prosecution against India Cements on IPL issues: Arun Jaitley

NEW DELHI(PTI): The Ministry of Corporate Affairs has decided to launch prosecution proceedings against India Cements for non-compliance with certain provisions of companies law in relation to the Indian Premier League (IPL).

Former BCCI chief N Srinivasan

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

Providing details of action initiated against companies related to IPL cricket league, Corporate Affairs Minister Arun Jaitley today told the Lok Sabha in a written reply that instructions have been issued to start prosecution against India Cements for violating a provision of the Companies Act.

The Ministry has issued instructions “to launch prosecution for contravention of Section 211 on December 14, 2015 and to examine certain other issues arising out of inspection and to submit report,” Jaitley said in a written reply.

Section 211 of the Companies Act, 1956 pertain to balance sheet and profit and loss account.

According to Jaitley, non-furnishing of employees’ particulars in the director’s report (under Section 217A) was also noticed and India Cements was warned.

“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,” he noted.

Besides, prosecutions were filed for contravention of Section 372A on seven counts and for violating Section 217(2A). These were compounded and prosecutions were withdrawn in respect of the above cases, the Minister said.

Section 372 pertains to purchase of shares.

Meanwhile, the Registrar of Companies (RoC) has been instructed to file prosecution against GMR Sports Pvt Ltd — that owns Delhi Daredevils, Jaitley said.

This is for violations related to Section 211 and accounting standard. Show cause notices have been issued to the company and its directors and the reply is awaited, he said.

As per the written reply, no contravention of Companies Act, 1956, were noticed in the cases of Royal Challengers Sports Pvt Ltd, Deccan Chargers Sporting Ventures Ltd and Sahara Adventure Sports Ltd.

Royal Challengers Sports is the owner of Royal Challengers Bangalore.

Deccan Chargers Sporting Ventures had owned Deccan Chargers while Sahara Adventure Sports was the owner of Pune Warriors India.

About Knight Riders Sports Pvt Ltd, which is the owner of cine star Shah Rukh Khan’s team Kolkata Knight Riders, Jaitley said prosecutions were filed for violation of Section 383A and 211 of the Companies Act, 1956.

“However, later on, the company compounded the said offences,” he added. Section 383A pertains to appointment of secretaries.

With regard to KPH Dream Cricket Pvt Ltd, that owns Kings XI Punjab, the Minister said prosecutions were filed for “non-filing of balance sheet and annual returns for the year 2008-09. The prosecutions were withdrawn after compounding of offence by the Company Law Board”.

Meanwhile, prosecutions were filed for violations of Section 297 and 301 against Jaipur IPL Cricket Pvt Ltd, the owner of erstwhile Rajasthan Royals team.

“Later on, the company compounded the said offences,” Jaitley noted.

Section 297 relates to seeking board’s approval for some contracts while Section 301 pertains to maintaining registers for contracts.

According to the Minister, Indiawin Sports Pvt Ltd — the owner of Mumbai Indians team — was warned for non-compliance with respect to Section 23. This related to signing of franchisee agreement in the erstwhile name, Rathipriya Trading Pvt Ltd on April 10, 2008. Indiawin Sports is part of Reliance Industries.

“RoC, Mumbai had received a complaint against Indiawin Sports Pvt Ltd for not providing certified copies of the Register of Members and Annual Returns and the matter was taken up with the company.

“The company replied that the inspection sought by the complainant was allowed and the certified copies of the Register of Members and Annual Returns for the last five years 2009-10 to 2013-14 were provided to him. The complaint was closed on August 7, 2015,” Jaitley said.

In the case of Deccan Chargers Sporting Ventures, the Minister said that on scrutinising the company’s balance sheet, no violations of Companies Act provisions were noticed.

Posted by on December 18, 2015. Filed under Economy. You can follow any responses to this entry through the RSS 2.0. Both comments and pings are currently closed.