Over 13K companies prosecuted in last 3 years

The Government today said it has prosecuted over 13,000 companies during the three years ending 2008-09 for not following the provisions of the Companies Act.

"As many as 13,437 companies were prosecuted for non-compliance of provisions of the Companies Act, 1956, during the last three years--2006-07 to 2008-09," Corporate Affairs Minister Salman Khurshid told the Lok Sabha in a written reply.

All locally incorporated companies are required to follow the provisions of the Companies Act and regularly file reports with the Registrar of Companies. Violation of these norms invites penalty of different degrees, depending on the gravity of offence.

As many as 4,531 cases were pending for prosecution, Khurshid said, adding, "the process of filing prosecution in these cases has been initiated".

There are more than eight lakh companies registered in the country today.

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