Hyderabad: In a major development that could send shivers down the businessmen and industrialists in the Telugu states, Satish Reddy, Chairman, and Gunupati Venkateswara Prasad, Co-Chairman and CEO of Dr Reddy’s Laboratories Limited, figured among 41,068 company directors who were disqualified and banned for five years by the Registrar of Companies, Hyderabad, under Section 164(2)(a) of the Companies Act, 2013. Prominent personalities and directors on well-known companies from Hyderabad are found in the latest list of disqualified list with Registrar of companies (RoC).
Sudhir Sanghi and Ravi Sanghi are also among those defaulted directors, according to the list. With the latest list, the total number swells over 1,00,000 during the past five years. Before action against defaulting companies, there were about 1.3 million companies registered with RoCs. However, after the closure of around 210,000 companies, about 1.1 million are active.
Other prominent names from Hyderabad include Tikkavarapu Manjula Reddy, Venkata Tikkavarapu and Engala Reddy representing Deccan Chronicle Marketers Pvt Ltd, Deccan Chronicle Secunderabad Pvt Ltd, Deccan Chronicel Rajahmundry Private Limited and Andhra Bhoomi Publications Private Limted.
In July this year, insolvency process initiated at Deccan Chronicle Holdings Limited (DCHL) with KK Rao, IRP (Interim Resolution Professional), taking over the management of the media house that publishes Deccan Chronicle, Andhra Bhoomi, a Telugu daily, and a host of other publications. DCHL has an outstanding loan amount of Rs 700 with Canara Bank alone while the total debt pile on its books is estimated to be upwards of Rs 4,000 crore.
However, all those figured in the list can’t be termed as fraudulent, observes the Federation of Telangana and Andhra Pradesh Chambers of Commerce and Industry (FTAPCCI). Speaking to The Hans India, TS Appa Rao, Secretary General at FTAPCCI, said: “There’re genuine directors and companies. Some companies were identified by government authorities for not filing returns.
Delaying return may also be a reason for disqualification. Major companies are also figured in the list. It doesn’t mean that they have indulged in fraudulent practices. Sometimes, even not giving information about mergers, acquisitions or some other business development in time may also result in violation of norms. But, this wouldn’t be a major fraud. Basically, it’s a technical issue, but not fraudulent practice. I think many names of genuine businessmen will be restored.”
Substantiating what FTAPCCI says, late Dr Anji Reddy Kallam’s name was also figured in the list, which says his status is active and now stands disqualified. Dr Anji Reddy, founder of Dr Reddy’s Lab, passed away in 2013. Such technical errors also bring genuine businessmen and companies under the list, said a chartered accountant.