Over 8,300 firms prosecuted for economic offences: Govt

As many as 8,360 companies have been prosecuted in the last three years for committing economic offences, government said today.

Of these, 3,511 companies were prosecuted in 2011-12, Corporate Affairs Minister Sachin Pilot informed the Lok Sabha in a written reply.

Besides, 1,653 and 3,196 firms were prosecuted in 2010-11 and 2009-10 respectively, he said.

To a separate query, Pilot said imprisonment of directors was ordered by courts against 14 companies for violations of the Companies Act during the last three years.

According to the Minister, violations of provisions of the Companies Act, 1956, "entail penal action in the nature of fines or imprisonment or both".

"The power of imprisonment/acquittal of any accused rests with the Courts," he said.

Meanwhile, responding to a question about revising norms related to amalgamation of companies, Pilot said the Companies Bill provides that "central government may provide for merger or amalgamation of companies in such manner as may be prescribed".

"Rules for carrying out merger or amalgamation of the companies will be prescribed through rules once the bill is enacted," he added.