The investor protection cell in the Department of Company Affairs (DCA) settled 501 complaints of investors satisfactorily during June 2001. Almost all complaints belonged to individual investors.
During the month, the regional benches of the Company Law Board (CLB) passed orders for payments of deposits in 488 applications under Section 58A of the Companies Act, 1956, and Section 45Q (2) of the Reserve Bank of India Act, 1934.
Under other sections of the Companies Act, the CLB disposed of 308 applications, the department said today in an official release.
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Meanwhile, DCA has ordered prosecution of a Lucknow-based plantation company Arya Plantation and Farm Developers Ltd and its directors for having made investments in excess of the limit prescribed by the provisions of Section 372 of the Companies Act, 1956, without obtaining prior approval of the board of directors or the government.
The prosecutions against the company follow inspection of account and other records by the department.
The department said in an official release issued today that the company has also been prosecuted for violation of Section 370 of the Act as its outstanding loan has exceeded the limits prescribed under the Section. It has also failed to get approval of the government as prescribed under Section 295.
The prosecution has also been ordered for violation of Section 209 (A) of the Act, for not producing the books of accounts and other records for inspection by DCA.