Prosecution filed against Sesa Goa for violation of Cos Act

The government Thursday informed Parliament that it has initiated prosecution proceedings against Vedanta Resources-owned Sesa Goa for violation of certain provisions of the Companies Act.

"Based on the recommendation made by SFIO in its investigation report, prosecutions under Sections 147 and 395 of the Companies Act, have been filed in Court, while prosecution for the violation under Section 211 is being filed," Minister of State for Corporate Affairs R P N Singh told the Lok Sabha in a written reply.

The Minister further said that the Institute of Chartered Accountants of India (ICAI) has been asked to look into the role of auditors of the company.

"...A reference is being made to the ICAI to initiate disciplinary action against the statutory auditors of the company for professional misconduct under schedule I and II of the Chartered Accountants Act, 1949", Singh said.

The government on October 23, 2009, had asked the Serious Fraud Investigation Office (SFIO), a probe wing under the Corporate Affairs Ministry, to look into iron trading by Sesa Goa.

The minister also said that the government has approved the proposal of Cairn Energy Plc to transfer 40 percent of equity shares of Cairn India to Vedanta Resources Plc on certain conditions.

These conditions include performance guarantee by Cairn Energy Plc, clearance from the Home Ministry and relevant regulatory approvals from Securities and Exchange Board of India (Sebi), he added. 
PTI