The government has filed prosecution cases against nine companies of the JVG Group for cheating, fraud, criminal breach of trust and diversion of funds following investigations by the Ministry of Corporate Affairs in 2007, Parliament was informed today.
"The investigations revealed various instances of misuse of money raised by these companies and defaults in repayment. Various instances of cheating, fraud, criminal breach of trust and diversion of funds etc., by the pomoters/directors of the said companies. SFIO has since filed prosecution in respect of nine companies," Minister of State for Corporate Affairs RPN Singh told the Lok Sabha in a written reply.
In 2007, the Ministry of Corporate Affairs had ordered investigation into affairs of 13 companies of the JVG Group and thereafter referred the matter to the SFIO.
SFIO has submitted its reports in respect of each of these 13 companies, of which four companies are under liquidation. He added that filing of prosecution against these four companies can be done after obtaining the leave of the High Court in term of section 446 of the Companies Act.