IPL Scam: Deccan Chargers Safe

The Union Government on Thursday stated that it has not found any violation of the Companies Act, 1956, by the Deccan Chargers, an Indian Premier League (IPL) franchise.

In a written reply to a question, Union Minister for Corporate Affairs Salman Khurshid stated that the central government is looking into violation of the Companies Act, 1956, by some IPL franchises.

Khurshid stated that no violation of provisions of the Act have been found in the balance sheets, annual returns and other documents of Deccan Chargers Sporting Venture Limited.

He stated that the documents of the IPL franchises have been examined under Section 234 of the Act.

Documents relating to the Mumbai Indians (owned by Indiawin Sports Pvt. Ltd.), Royal Challenger Bangalore (owned by Royal Challenger Sports Pvt. Ltd.), Deccan Chargers (owned by Deccan Chargers Sporting Ventures Ltd.), Chennai Super Kings (owned by India Cements Ltd.), Delhi Daredevils (owned by owned by GMR Sports Pvt. Ltd.), Kings XI Punjab (owned by KPH Dream Cricket Pvt. Ltd.), Kolkata Knight Riders (owned by Knight Riders Sports Pvt. Ltd.), Rajasthan Royals (owned by Jaipur IPL Cricket Pvt. Ltd.), apart from new entrants Sahara Pune Warriors (owned by Sahara Adventure Sports Ltd.) and Kochi (owned by Rendezvous Sports World) have been examined.

Of these, Rendezvous Sports World is an "association of persons not registered under the Act".

Khurshid informed the House that based on the Technical Scrutiny Reports submitted by the Registrar of Companies (ROCs) under Section 234 of the Act, non-compliance of certain provisions of the Act relating to non-filing of balance sheet/annual return (Sections 159/220), non-appointment of whole time company secretary (Section 383A), non-compliance of Section 211 read with Schedule VI and Accounting Standards have been noticed, and ROCs have been instructed to take penal action in respect of these contraventions.

Courtesy: INN