RoC looks into corporate governance complaints against S Kumars

The Serious Fraud Investigation Office (SFIO) has received complaints about alleged violation of corporate governance and other norms by textile major S Kumars Nationwide and the matter is being examined by the Registrar of Companies, Ministry of Corporate Affairs said.

The Office of RoC, Mumbai, is examining the reply from the company and any further action in this matter would be taken after receipt of its report, Minister of State for Corporate Affairs R P N Singh said in reply to the Rajya Sabha.

Asked whether SFIO has received any complaints regarding violations of corporate governance and 'myriad transactions involving demergers etc' by S Kumars Nationwide Ltd (SKNL), the minister replied in affirmative.

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"The complaint was taken up by the Office of the Registrar of Companies (RoC), Mumbai, who has reported that reply of the company is under examination. Further action in the matter will be taken on the receipt of report from ROC Mumbai," Singh said.

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The minister, however, said that SFIO itself is not investigating the issues related to misrepresentation in corporate reporting and violation of various sections of Companies Act by SKNL.

To another question related to SFIO, the Minister said that an expert committee under the chairmanship of Vepa Kamesan was constituted by the Ministry on February 23, 2006 to advise on the nature of legislation and changes required in the existing laws, to enable effective functioning of the agency.

The committee submitted its report to the Ministry in 2009. Based on the report, provisions have been made in the Companies Bill, 2011 to given SFIO powers to investigate into the affairs of the company through a relevant clause.

PTI