The government on Thursday said it has found 87 companies across the country to have vanished after raising funds totalling R342 crore through public issues and a majority of such firms are from Gujarat.
Besides, 87 other companies are also being probed by government agencies for duping the public through illegal multi-level marketing (MLM) or ponzi schemes and West Bengal tops this list with as many as 73 such entities.
The market regulator Sebi has also detected as many as 669 companies to have duped the investors of R7,435 crore through illegal collective investment schemes, corporate affairs minister Sachin Pilot informed the Lok Sabha.
The entities are classified as ?vanishing companies? if they cease to file their balance sheets and other documents after raising capital and the whereabouts of their offices or directors become untraceable. In the ponzi or MLM investments, the companies generally raise the money from general public and ask each investor to lure others into these schemes with a promise of huge returns.
However, the operators disappear after some time, leaving the investors in the lurch.
Giving details of the entities running such ponzi schemes, as also that of the vanishing companies, Pilot said chief ministers of various states have been requested to issue directions to their respective police authorities to take action against the erring companies.
Pilot said he has also written to the finance minister to facilitate increased surveillance by the RBI over unauthorised NBFCs (non-banking finance companies) to tackle the menace of ponzi schemes.
?The ministry takes prompt action against errant companies as and when complaints are received against them. At present, action has been initiated on complaints received against 87 companies relating to MLM/ponzi schemes,? Pilot said.
In reply to another query on vanishing companies, the minister said that the government had initially identified 238 such entities that have raised money through public issues.
Out of these, 119 companies were put under a ?watch list?, as they began filing their balance sheets and other documents with the Registrar of Companies or stock exchanges. Out of the remaining 119 companies, 32 companies are presently under liquidation, while 87 others have been classified as ‘vanishing companies’, Pilot said.
?The total amount of public issues made by these 87 companies is R341.90 crore (approximately),? he said.
As per the state-wise list, 26 companies out of the total 87 such untraceable firms were registered in Gujarat.
FIR has been filed against all the 87 companies and prosecutions has been filed against 85 of them.