Gold Quest International, a company engaged in minting gold coins of numismatic value, has come under the scanner of Ministry of Corporate Affairs (MCA) over allegations of defrauding customers in India and abroad.
The allegations against the company include illegal international chain of criminal acts, money laundering by selling valuable articles illegally imported and grabbing money from Indians living in India and abroad, Corporate Affairs Minister Salman Khurshid informed Parliament today.
"Investigation has been ordered into the state of affairs of M/s Gold Quest International under section 235 of the Companies Act, 1956, on July 28, 2010," he said in a written reply in Lok Sabha.
The company ran a scheme under which customers bought gold products at a prize more than the market prize. The excess was then invested in other businesses and the customers would be paid interest on the amount. Customers would also have to introduce new people to the scheme.
On being asked if the government is taking any measures to regulate mushrooming of such financial fraudsters, Khurshid said the new Companies Bill, which is going to be brought soon before the Parliament for passage, seeks to provide more stringent laws and promote more accountability and transparency.
To a separate query regarding violation of terms by PSUs relating to public deposits and non-repayment of these deposits, Khurshid replied that during 2008-09, 2009-10 and 2010-11, three complaints had been received against Sardar Sarovar Narmada Nigam in this regard.
"The RoC (registrar of companies), Gujarat, has taken up the matter with M/s Sardar Sarovar Narmada Nigam for redressal of the complaints," he said.