PANAJI: The Goa Congress has alleged serious violations of provisions of the Companies Act 2013 by Imagine Panaji Smart City Development Ltd (IPSCDL) and has demanded strict action.
The Congress said that the affairs of IPSCDL have been conducted in a manner prejudicial to the public interest and to the interests of the stakeholders, including the citizens residing or visiting Panaji.
“The company IPSCDL, is mandated to file the Audited financial statement and annual Return as per The Companies Act, 2013, within 30 days and 60 days respectively from the conclusion of the Annual General Meeting date as provided under Section 129 and 137 of The Companies Act, 2013,” the Congress said.
The Congres said that the inspection of particulars of IPSCDL on the MCA website reveals that the company has been in repeated default by not filing the financial statements for the years ending 31/03/2018, 31/03/2019, 31/03/2020, 31/03/2021, 31/03/2022.
“Additionally, the company has also been in repeated default by not holding AGM, not adopting financial statements, and not filing Annual Returns with the ROC. This should have resulted in strict action under section 137 read with section 96 of the Companies Act, which the ROC appears to have yet to initiate,” it says.
Also, since the BoD has failed in the discharge of statutory duties, the ROC is expected to act under the provisions of Section 164 of the said Act to disqualify the Directors and deactivate their DIN.
“There is also no record of meetings of the Board of Directors which are required to be held preceding the AGM to Authorize the auditor for the preparation of financial statements as per Schedule III of the Companies Act, 2013; Authorize the Director or Company Secretary for preparation of Board Report and Annual Return as per the Companies Act, 2013; Approve the draft financial statements, Board Report, and Annual Return by the directors of the company,” it said.
The Act prescribes an elaborate procedure for every company to attach important documents while filing the ROC such as Balance-Sheet, Profit & Loss Account, Annual Return and Cost Audit Report.
“IPSCDL has flouted rules with impunity. The ROC has a duty to take appropriate action against such companies that are defaulters. IPSCDL is found to be a habitual defaulter, and therefore upholding the sanctity of the Companies Act 2013 and Rules made thereunder,” it said.
The Congress demanded the ROC to disqualify the Directors in the first instance, and all withdrawals of public money made unauthorisedly be held as illegal. “The ROC is also required to investigate criminal breaches of the Companies Act by IPSCDL and possible fraudulent conduct and protect the interest of the people suffering the effects of an ill-planned, unguided venture,” it said
Congress said the Annual Report of a Government company is also required to be placed before the Parliament or the State Legislature as provided under Section 394 of the said Act. IPSCDL has also failed to abide by these provisions, thus leaving scope for mismanagement, misappropriation, and fraud in the rush of expenditure of around 1000 crores in violation of all guidelines mandated for Smart City Mission.
It said the CAG has also yet to bring out any reports of an audit carried out in any of these years, which is again questionable as precious public resources cannot be squandered beyond the rule of law.