The case has been filed in the Company Law Board (CLB), under Section 388 B of the Companies Act, 1956, for alleged unsatisfactory accounting of Rs 610 crore of the booking amount for Fiat Uno.
The government has alleged that in another breach of the law, Premier Automobiles Managing Director M V Doshi entered into an agreement with Fiat Auto Spa, Italy, on behalf of the company without the permission of the board.
The petition filed last week said the shareholders and the board of Premier Automobiles were allegedly kept in the dark about the assets and liabilities transferred to Fiat Auto Spa at the time of the transfer of the Kurla plant.
In reply to a questionnaire from Business Standard, Premier Automobiles said it had submitted full particulars regarding the use of the booking money for Fiat Uno to the Registrar of Companies.
L Krishnamoorthy, vice-president and company secretary of Premier Automobiles, said in a faxed reply that the documents were submitted in pursuance with the investigations conducted into the episode by the department of company affairs in 1998.
He added that these included bank statements and copies of letters to all those who had requested cancellation of their bookings for the Uno.
The petition, however, says the company is yet to furnish full details of the use of the booking money.
Krishnamoorthy said the agreement with Fiat Auto Spa for transfer of Premier Automobiles
