The Ministry of Corporate Affairs has decided to launch prosecution proceedings against India Cements for non-compliance with certain provisions of companies law in relation to the Indian Premier League (IPL).
Former BCCI chief N. Srinivasan-led India Cements was the owner of suspended IPL team Chennai Super Kings.
The Ministry has issued instructions to launch prosecution for contravention of Section 211 on December 14, 2015 and to examine certain other issues arising out of inspection and to submit report.
Section 211 of the Companies Act, 1956 pertains to balance sheet and profit and loss account.
Non-furnishing of employees’ particulars in the director’s report (under Section 217A) was also noticed and India Cements was warned.
Besides, prosecutions were filed for contravention of Section 372A on seven counts and for violating Section 217(2A). These were compounded and prosecutions were withdrawn in respect of the above cases.
Section 372 pertains to purchase of shares. This is for violations related to Section 211 and accounting standard.
Show cause notices have been issued to the company and its directors and the reply is awaited.
As per the written reply, no contravention of Companies Act, 1956, were noticed in the cases of Royal Challengers Sports Pvt Ltd, Deccan Chargers Sporting Ventures Ltd and Sahara Adventure Sports Ltd.
Royal Challengers Sports is the owner of Royal Challengers Bangalore.
Deccan Chargers Sporting Ventures had owned Deccan Chargers while Sahara Adventure Sports was the owner of Pune Warriors India.
About Knight Riders Sports Pvt Ltd, which is the owner of cine star Shah Rukh Khan’s team Kolkata Knight Riders, prosecutions were filed for violation of Section 383A and 211 of the Companies Act, 1956.
Section 383A pertains to appointment of secretaries.
Meanwhile, prosecutions were filed for violations of Section 297 and 301 against Jaipur IPL Cricket Pvt Ltd, the owner of erstwhile Rajasthan Royals team.
Section 297 relates to seeking board’s approval for some contracts while Section 301 pertains to maintaining registers for contracts.
Current Affairs: 18th December, 2015 Important Days in November and December Current Affairs bullet points Round up 7th to 14th December, 2015 Current Affairs Round up November, 2015.
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