MCA traces 14 vanishing companies from Hyderabad
Of 77 vanishing companies which are yet to be traced by the Ministry of Corporate Affairs MCA, around 14 of them which is the second highest number in...
HYDERABAD: Of 77 ‘vanishing companies’ which are yet to be traced by the Ministry of Corporate Affairs (MCA), around 14 of them which is the second highest number in the country after Ahmedabad are from Hyderabad.
Vanishing companies are those that have raised money through an IPO and have failed to fulfill the listing requirement and are not traceable. MCA could trace only 161 companies of total 238. The 14 companies are from Hyderabad collected between 1.5 crore to Rs 5 crore each from the public.
Joint Coordination and Monitoring Committee of MCA and Securities and Exchange Board of India have not identified new firms, as vanishing companies, in three years. The committee identified around 238 firms that disappeared after public issue between the years 1992 to 2005.
Hyderabad registrar of companies has began the prosecution under Companies Act and registered FIRms under cheating sections of IPC. Prosecution for non-filing of returns and non-maintenance of registered office address were initiated against companies.