 "30% of vanishing firms in India from Gujarat: Pilot")
Thirty per cent of total vanishing companies in India are from Gujarat, the state considered as the country’s industrial hub.
In a written reply in the Lok Sabha, Corporate Affairs Minister Sachin Pilot said that as many as 87 companies fall under the category of ‘vanishing companies’ and first information reports have been lodged against all of them. Out of the 87 companies, 26 are from Gujarat.
Most of these 26 companies were agro-based or pharmaceutical companies, showed a table given by the minister in the lower house. Companies are classified as ‘vanishing companies’ if they cease to file their balance sheets and other documents after raising capital and the whereabouts of their offices or directors become untraceable.
“Prosecutions have also been filed against these companies and their promoters/directors,” said Pilot. Gujarat was followed by Andhra Pradesh, with 13 vanishing companies and Tamil Nadu with 10 such companies. “Instructions have also been issued to the Registrars of Companies to scrutinise the balance sheets and other records of the companies which raise money through public issue so as to monitor the utilisation of such funds,” mentioned Pilot.
In a written reply in the Lok Sabha, Corporate Affairs Minister Sachin Pilot said that as many as 87 companies fall under the category of ‘vanishing companies’ and first information reports have been lodged against all of them. Out of the 87 companies, 26 are from Gujarat.
Most of these 26 companies were agro-based or pharmaceutical companies, showed a table given by the minister in the lower house. Companies are classified as ‘vanishing companies’ if they cease to file their balance sheets and other documents after raising capital and the whereabouts of their offices or directors become untraceable.
“Prosecutions have also been filed against these companies and their promoters/directors,” said Pilot. Gujarat was followed by Andhra Pradesh, with 13 vanishing companies and Tamil Nadu with 10 such companies. “Instructions have also been issued to the Registrars of Companies to scrutinise the balance sheets and other records of the companies which raise money through public issue so as to monitor the utilisation of such funds,” mentioned Pilot.