Gujarat tops the list on vanishing cos

One of the most industrialised states of the country, Gujarat, tops the list of states with companies that vanished after collecting money f...

One of the most industrialised states of the country, Gujarat, tops the list of states with companies that vanished after collecting money from the public. Securities and Exchange Board of India (SEBI) has identified 229 fly-by-night companies, of which 30 per cent or 65 companies were incorporated in Gujarat, according to Department of Company Affairs.

After collecting funds through public issues, the 229 listed companies, most of them either finance related or manufacturing companies, are not available now at their registered offices.

Delhi takes the second place in the list. Here, 32 companies including 15 finance related ones did the vanishing act. Andhra Pradesh and Tamil Nadu had 22 and 21 such companies respectively, mostly manufacturing ones.

Story continues below this ad

The highly industrialised states of Maharashtra and West Bengal had only 19 and 18 vanishing companies respectively. Significantly, Maharashtra registered the highest number of companies at 361 in March 2002. Karnataka had eight vanishing companies, Madhya Pradesh nine, Punjab and Bihar seven each, Uttar Pradesh 10, Orissa four and Kerala and Meghalaya one each.

Out of the 229 fly by night companies, prosecution has been launched against 135 companies. According to sources, prosecution has been ordered by DCA in case of 102 companies, while in case of 33 companies, police complaints had also been filed.

Out of the 229 dubious companies, only 64 companies were regular in filing documents, 26 were under liquidation, default notices were issued to two and two were seized by the state governments. Twenty one companies were not traceable even after due inquiries. According to March 2002 data, Delhi registered 319 companies, Tamil Nadu 193, Andhra Pradesh 135, West Bengal 117, Karnataka 115 and Gujarat 62.

These seven states together accounted for 79 per cent of the total number of companies registered during the month. Of the 1,651 companies, registered in March 2002, 504 were manufacturing companies, 454 financing, insurance, real estate and business services, 344 wholesale and retail trade, restaurants and hotels, 110 construction companies and 107 community, social/personal companies amongst others.

As GST 2.0 kicks in: what changes for consumers and industry

Explained1 hr ago

The government has introduced significant changes to the GST structure, aiming to lower tax rates for various goods and services. This includes exemptions for Indian bread and health insurance, reduced taxes for beauty and well-being services, and addressing the inverted duty structure. The changes, effective immediately, are expected to boost household spending and encourage investments.

View all shorts

Live Blog