The Corporate Affairs Ministry has found various violations of companies law by the Delhi and District Cricket Association (DDCA) and the findings have also been shared with Income Tax Department for appropriate action.
An inspection of DDCA's books of accounts and other records revealed violations of various provisions of the Companies Act, 1956, the government informed the Lok Sabha today.
"Further, non-compliance of the provisions of Section 227 by the auditors has also been pointed out... ROC (Registrar of Companies) has also been directed to refer the matter relating to the auditor to the Institute of Chartered Accountants of India," Minister of State of Corporate Affairs Nirmala Sitharaman said in a written reply.
DDCA comes under ROC, Delhi.
"In respect of the violations for which compounding applications have not been submitted till date, the ministry has directed the ROC, Delhi to provide 15 days time, failing which to launch prosecution," the Minister said.
On large number of proxies in DDCA, the Minister said the matter was brought to the notice of Ministry of Youth Affairs and Sports after the inspection report was received.
In terms of the provisions of the Companies Act, it is not open to the government to forbid use of proxies where Articles of Association of a company so provide, she noted.
Further, Sitharaman said the ministry has "referred the findings of the inspection to Income Tax Department and the nominee directors of DDCA for appropriate action".
