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. Providing details of action initiated against companies related to IPL cricket league, Corporate Affairs Minister Arun Jaitley on Friday told the Lok Sabha in a written reply that instructions have been issued to start prosecution against India Cements for violating a provision of the Companies Act.
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," Mr. Jaitley said in a written reply. Section 211 of the Companies Act, 1956 pertains to balance sheet and profit and loss account.
According to Mr. Jaitley, non-furnishing of employees' particulars in the director's report (under Section 217A) was also noticed and India Cements was warned.
“Subsequently, inspection and re-inspection of books of account of India Cements Ltd were ordered under Section 209A of the Companies Act, 1956 on the basis of questionnaire of CBI relating to Jagan case," he noted.
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 These were compounded and prosecutions were withdrawn in respect of the above cases, the Minister said.Section 372 pertains to purchase of shares.