Press Information Bureau
Government of India
Ministry of Corporate Affairs

25-August-2011 17:34 IST

Violation of Companies Act

               

                The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today informed the Lok Sabha that the number of prosecutions filed for the violations of the provisions of the Companies Act, 1956 and disposed of during last three years are as under:-

 Year               No of cases

                  Filed        Disposed of         

 2007-08     17080            6993

        2008-09     13971           10506

2009-10       9021             7647

 

                The cases which are pending in various Magisterial Courts in the Country are at different stages, such as, filing of reply by the respondents, examination of witnesses etc. It is an ongoing process of the trials before the courts. 

                The violations are in the nature of ‘economic offences’ which lie in the jurisdiction of Magisterial Courts and not the Company Law Board.            

                The Minister was replying to a written question on the number of prosecution initiated by the Government on the errant companies which have violated the Companies Act, 1956 during each of the last three years and whether the Government has approached the Company Law  Board with regard to the pending cases of violation?

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            ST/-

Prosecutions under Companies Act: violations treated as economic offences prosecuted in magisterial courts with ongoing trials. Prosecutions under the Companies Act, 1956 were initiated and disposed over a three-year period, with numerous matters remaining pending in Magisterial Courts at various procedural stages; the offences are described as economic offences within Magisterial Court jurisdiction rather than the Company Law Board, and trials are ongoing.