Contravrntion
Guest
(Querist) 20 June 2014
This query is : Resolved
A company accepted fixed deposits in contravention of provisions and rules of Companies Act. In fact it was contravention with ill motive means contravention was done in a planned way. Can an FIR against the Company and its Directors be filed for fraud misrepresentation, 420 etc. for ill motive IN ADDITION TO TAKING action for contravention of provision/rules of/under Companies Act?
Dr J C Vashista
(Expert) 21 June 2014
Yes, you should file complaint/lodge FIR.
Devajyoti Barman
(Expert) 21 June 2014
Yes, such complaint lies..You can lodge complaint with SEBI as well.
R.K Nanda
(Expert) 21 June 2014
agree with experts.
prabhakar singh
(Expert) 21 June 2014
When there is an act defined as crime FIR can always be lodged.
malipeddi jaggarao
(Expert) 21 June 2014
What is the proof that the company accepted the Fixed Deposits? In which way you are concerned? Come with full facts. If the company borrows money from some creditors sometimes, it may be unsecured loan.
Guest
(Querist) 21 June 2014
The company in connivance with a broker company invited and accepted deposits by providing old forms, which showed profits but in fact it was in loss and could not invite deposits. It has violated all the rules of companies act.
Kindly advise under which provisions of Crpc FIR is to be lodged for Misrepresentation, fraud etc. by the company and connivance between the company and the broker company.
Further what will be the place for lodging such FIR because investor and broker are in one state whereas the company is in other state.
Guest
(Querist) 22 June 2014
While opinion of the experts on my query is awaited, somebody has drawn my attention to the following provision:
Section 58AAA in The Companies (Amendment) Act, 2000
58AAA.
Default in acceptance or refund of deposits to be cognizable.-
(1) Notwithstanding anything contained in sections 621 and 624, every offence connected with or arising out of acceptance of deposits under section 58A or section 58AA shall be cogniza le offence under the Code of Criminal Procedure, 1973 (2 of 1974 ).
(2) No court shall take cognizance of any offence under sub- section (1) except on a complaint made by the Central Government or any officer authorised by it in this behalf.'
It means, FIR can not be filed in the instant case nothwithstanding commission of fraud by the company.
Experts may kindly guide.
Biswanath Roy
(Expert) 22 June 2014
If you are a share holder of the company then you can lodge a complaint against the Director or Directors in the office of Registrar of Companies, Government of India.
Raj Kumar Makkad
(Expert) 22 June 2014
Any person who has unncessarily and malafidely been lured to deposit its hard earned amount and further fraud has been played can definitely file FIR similar to a share-holder under the various sections of IPC.
Guest
(Querist) 23 June 2014
Thanks Respected Roy and Makkad Sahib. Kindly guide can FIR be filed at the place of residence of the victim although company's registered office is in other state. The fixed deposit was through a broker at the place of residence.
V R SHROFF
(Expert) 23 June 2014
LET BROKER AND COMPANY BE JOINT ACCUSED- PARTIES.
Inform Company Law Board, Liquidation..
Biswanath Roy
(Expert) 23 June 2014
You can file FIR at the place of residence of the victim in writing but get the signed copy receipted by the Police and thereafter file your complaint to the Registrar of Companies,SEBI and RBI ALONG WITH A XEROX COPY OF FIR. In your FIR you also mention the name of the agent of the company along with his address complaining his inducement in the matter.
Raj Kumar Makkad
(Expert) 24 June 2014
The place of filing FIR in the police station in whose jurisdiction even the iota of the cause of action has arisen to the victim. It has nothing to do with the place of the residence of the victim or the accused.
As the FD was deposited at your place of residence, file FIR there.
T. Kalaiselvan, Advocate
(Expert) 24 June 2014
I agree with the views of experts above. A complaint can be lodged with economic offences wing of the district police or with the crime branch police for offences of cheating, fraud and scam criminally motivated conspiracy etc.
Guest
(Querist) 25 June 2014
Respected Sirs, I am sorry to raise this question again. What will bw the significance of FIR filed in this case in view of following Section in the Companies Act, 1956:
Section 58AAA in The Companies (Amendment) Act, 2000
58AAA.
Default in acceptance or refund of deposits to be cognizable.-
Section 58AAA in The Companies (Amendment) Act, 2000
58AAA.
Default in acceptance or refund of deposits to be cognizable.-
(1) Notwithstanding anything contained in sections 621 and 624, every offence connected with or arising out of acceptance of deposits under section 58A or section 58AA shall be cogniza le offence under the Code of Criminal Procedure, 1973 (2 of 1974 ).
(2) No court shall take cognizance of any offence under sub- section (1) except on a complaint made by the Central Government or any officer authorised by it in this behalf.'
Raj Kumar Makkad
(Expert) 25 June 2014
In the light of the given provisions, FIR can be got quashed and a criminal complaint only can be filed by GOI.
