No penal action against cos till charges established

This creates problems for companies and directors as the charges levied are usually under section 209 A,sub section (8) and (9),which relate to severe penal actions under section 209 A. The section deals with the inspection of books. We have received representations from firms. The inspectors though serve summons to firms but many a time,they dont reach the destination due to change of address or other problems. In such cases,the inspectors usually levy charges on their own,without proper ground work, sources told The Indian Express. The sources said the proposal was sent to the law ministry,which said the inspection officers would not levy charges till the summons served to the people concerned. Also,inspection officers should try to get more information about firms and people involved in any case before levying charges,the sources added.

Further,since the process adopted by the officers is not clear,the case presented in the court becomes weak,which acts as an embarrassment for the government and also increases the time of prosecution of a case,the sources said. This is a move to curtail the casual approach inspection officers have towards cases,the sources said,adding that this would also reduce correspondence and bring more efficiency in inspection work and at the same time decrease the prosecution time.