Tuesday, August 2 2005 20:17 Hrs (IST) - World Time -

New Delhi: The Government today (Aug 2, 2005) said 71 companies, which came out with IPOs during 1993-95 raising a sum of Rs 607.65 crore from the public, have been identified as vanishing companies.

Even though prosecution and disgorgement proceedings have been initiated in a few cases, a final outcome is still awaited as it involves court process, Company Affairs Minister Prem Chand Gupta said in a written reply in Rajya Sabha.

Gupta said his ministry has not referred any case of vanishing companies to CBI for investigation.

However, prosecutions have been filed against these companies under various provisions of the Companies Act, 1956.

FIRs have also been filed under the provisions of Indian Penal Code and investigations are under progress by police authorities in various states, he said.

There are 38 companies, including Duncan Industries Ltd, Morepan Laboratories Ltd, C F L Capital Financial Services Ltd, First Financial Services Ltd and Nagarjuna Finance Ltd, that have flouted the schemes of repayment of deposits approved by the Company Law Board in the last three years, he said in reply to another question.

Government has initiated prosecution against the defaulting companies for non-compliance of orders of Company Law Board as per the provisions of the Companies Act, except in cases where matter is pending in higher courts, Gupta said.