Now,lok adalats to review pending corporate cases

We have told the RDs to conduct lok adalats in the offices of concerning registrar of companies (ROCs) in cases where offences range from not filing annual returns to not providing information sought by the ministry. These cases should be cleared then and there,and orders will be passed, corporate affairs secretary D K Mittal told The Indian Express.

The ministry has also directed the registrar of companies to review prosecutions filed against independent directors and withdraw cases where independent directors were not liable.

Mittal said the exercise would settle around 60 per cent of the pending prosecution cases and provide resources and time to the ministry to focus on more serious violations and offence.

The corporate affairs secretary added that there are many cases where corporate houses have paid penalty and compliance has been done with the provisions. Such cases would be cleared in these adalats.

The offences which are compoundable will be sorted out. In fact,we have directed that where companies or directors are not available or traceable,and they are not listed or have not accepted public deposits,RoCs should review the prosecutions filed, the secretary said.

Earlier in March,the ministry had asked the RoCs to take extra care in examining the cases of independent and nominee directors and said that they should not be held liable for an action by the company or its executives which occurred without their knowledge.

The circular said that in case of maintenance of accounts and balance sheet,and for complying with the provisions of the Companies Act,the managing director,the manager and the company secretary are liable for prosecution.