Gupta promises firm action against vanishing firms

Action against NBFC companies and other companies which have collected fund from the public and vanished with about Rs 1000 crore of investors's funds and corporates which have cheated depositors would be intensified, Prem Chand Gupta, central minister for company affairs, said here today on his first visit to Kolkata after taking over charge.

Gupta met members of the institutes of chartered accountants, company secretaries and cost accounts. Strict action would be taken against erring companies and directors, he added. Top priority should be given to protection of investors and to safeguard interests of the small depositors.

Gupta said the Companies Act should be simplified and brought down to about 300 clauses from more than 700 clauses now.

He invited suggestions to streamline the monitoring of companies accepting public money and advised strict vigilance on the part of the Registrar of Companies on companies changing names.

Gupta visited the ROC regional director to examine procedures for accepting registration papers as well as online registration and placement of documents.