Millennium Post

78 cos vanish after raising funds; 17 in Gujarat alone

Seventy eight companies have gone untraceable after raising funds from investors, with Gujarat having the maximum number of 17 such entities, according to official data. These entities are spread across Gujarat, Tamil Nadu, Maharashtra, Madhya Pradesh, West Bengal and Uttar Pradesh and some other states.

Companies which fail to file documents and balance sheets after raising funds through public issues and go untraceable are called ‘vanishing companies’. Cumulatively, these 78 vanishing companies have raised a little over Rs 310 crore. Among the 78 entities, Gujarat has the maximum at 17.

Others include 10 such companies in the state of Tamil Nadu and nine in Maharashtra. West Bengal, Madhya Pradesh and Delhi each have five vanishing firms, according to data compiled by the Corporate Affairs Ministry.

First information reports (FIRs) have been lodged against all 78 companies and their directors to trace their whereabouts and also to take action against them under the Indian Penal Code, the Government has informed Parliament. 

Besides, prosecutions have been filed against these various entities under different provisions of the Companies Act. 
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