DCA ORDERS PROSECUTION AGAINST - A DELHI BASED COMPANY

New Delhi ~ May 31 2001

The Department of Company Affairs (DCA) has ordered prosecutions of Delhi based plantation company M/s. Timber World Resorts and Plantation Ltd. and its directors/officers in default for violation of the provisions of Section 209A(8) of the Companies Act 1956 for non production of books of accounts and other records for inspection by DCA. The penal provisions provide for compulsory imprisonment and minimum fine of rupees fifty thousand for each director/officer in default.

Besides prosecution under Section 628 of the Companies Act for furnishing false statement in the Annual Return has been ordered.

The company has given loan/advances in excess of the prescribed limits without obtaining prior approval of the Central Government in terms of Section 370 of the Companies Act. Prosecution for violation of this Section has also been ordered.

The company has made investment in excess of the limit without approval of the Central Government under the provisions of Section 372 of the Act for which also prosecution has been ordered.

The company has violated provisions of Section 41(2) and Section 70(1) of the Companies Act by not filing the statement in lieu of prospectus. Prosecution for this has also been ordered.

The prosecutions have been ordered following inspection of books of accounts by the DCA.