CA NeWs Beta*: Union ministry of corporate affairs disqualifies 5,023 directors of companies in Andhra Pradesh

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Wednesday, December 11, 2019

Union ministry of corporate affairs disqualifies 5,023 directors of companies in Andhra Pradesh

 The Registrar of Companies (RoC) has disqualified 5,023 directors, including honchos of Akshaya Gold Farms and Villas India Limited, of Andhra Pradeshfor violating the provisions of the Companies Act. 
The director identification number(DIN) of these individuals has also been deactivated. They have been barred from being a director for non-filing of annual returns and balance sheets. According to the Union ministry of corporate affairs
(MCA) officials, who oversee the operations of the RoC, the directors had failed to file returns for the preceding three years. 
“They get disqualified from all companies where they are currently directors, and they cannot be directors in any new company during the disqualification phase. Their DINs have been deactivated. In spite of disqualification if an individual continues as a director on paper, this can invite a jail term up to one year and a fine, which shall not be less than Rs 1 lakh but can be extended up to Rs 5 lakh,” an MCA official. 
Over 240 directors of chit fund companies across AP were also disqualified by the RoC. Directors of multi-level marketing firms and companies promoting ponzi scheme were also disqualified for non-filing of returns and balance sheets. Officials suspect several of these could be briefcase companies

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