Investor associations, NGOs urged to lodge complaints against vanishing companies

Chennai: The union ministry of company affairs has directed its regional directors to motivate non-governmental organisations (NGO) and investor associations to lodge complaints against promoters / directors of vanishing companies.

According to the ministry, one of the constraints faced by the investigating agencies is the lack of interest on the part of investors, NGOs and individuals to lodge specific complaints against fraudulent companies and their promoters and directors.

Meanwhile, the ministry claims to have achieved good results with its investigations in Gujarat. The Gurajat police has registered first information reportsin 27 cases and several promoters and directors of vanishing companies have been arrested.

Directors and promoters of Frontline Financial Services Limited, Lyons Industrial Enterprises Limited, Kome-on Communications Limited, Shreeji Dye-chem Limited, Kesar Greenfield Limited, Protech Circuit Breakers Limited were arrested during the year 2003-2004. Similarly chargesheets have been issued against all the four promoters and directors of Tirth Plastic Limited.