Govt penalised directors of 14 companies, says Jaitley

Directors of 14 companies, including that of erstwhile Satyam Computer Services, were penalised for violating various provisions of the companies law, the government said today.
The total penalties imposed on directors -- of companies whose annual turnover was more than Rs 50 crore -- touched nearly Rs 2 crore.
These individuals were found to have violated various provisions of the companies law.
Corporate Affairs Minister Arun Jaitley gave the information in a written reply to the Lok Sabha while responding to a query about "details of imprisonment/ penalisation of directors of companies having turnover of more than Rs 50 crore annually in the year 2014-15".

Companies Act is implemented by the Ministry.
Among others, action was taken against erstwhile Satyam Computer's directors -- Ramalinga Raju, B Ramaraju, V Srinivas and Mynampati. A cumulatively fine of Rs 10,50,000 was imposed on them apart from six-month simple imprisonment for each individual.

The highest fine was imposed on Man Structurals Pvt Ltd and its Managing Director Kishore P Rungta. A fine of Rs 1.89 crore, Rs 76.75 lakh and Rs 12.60 lakh for the years 1996-97, 1997-98 and 1998-99 were respectively imposed on the company.
The other companies whose directors have been penalised include -- Xrbia Developers, Borachem Industries, Li Taka Pharmaceuticals, Sidhanath Sugar Mills, Pegasus Healthcare, Atibar Industries, SCL Steel Corporation, Lakhani India and four JVG group companies.

The charges levied against such directors include levy of fine and simple imprisonment. In some cases, action has been completed, while in some others, the company and its directors have filed an appeal before the appellete court, which is pending.