The Serious Fraud Investigation Office (SFIO),the investigation wing of the ministry of corporate affairs (MCA),will probe 53 companies including Sunshine India Land Developers Ltd,Icore E-services Ltd,Rose Valley Real Estate & Construction Ltd,along with Saradha Realty India in its first leg of investigation and will widen the scope of the probe to include more companies suspected of diverting funds.
We already have reports from RoCs (registrar of companies) who have prima facie found several such entities indulging in diversion of funds collected from the public. The RoCs have recommended further investigation into the cases, a government official,who did not wish to be named,told The Indian Express.
The 20 RoCs across the country have begun probing companies who have raised sums from the public.
The investigations under Section 234(6) of the Companies Act,1956,has concluded in several cases that companies were laundering public money,the official said. Following the inspection reports,a task force under the SFIO will investigate the cases.
The ministry is however yet to appoint anyone to head the task force and has also not set any time frame for submitting the report of investigation.
The first set of companies include Sunshine India Land Developers Ltd and its eight group companies,Icore E-services Ltd and its ten group companies,Saradha Realty India and its 13 group companies,and Rose Valley Real Estate and Construction and its 18 group companies.
The business of these companies are engaged in range from mutual funds,real estate,housing,apparels,paints,iron and steel,cements,gems and jewellery to agriculture,news media,tours and travels,food,automobiles and airlines.
Earlier,in March this year,corporate affairs minister Sachin Pilot had informed Parliament that his ministry had received complains against many multi-level marketing (MLM) companies and Ponzi schemes being run by these entities. The MCA has formulated model rules for states to curb such activities under Prize Chits and Money Circulation Scheme (Banning) Act,1978.