DCA tells PSUs to file returns on time

new delhi: after tightening the noose around corporate entities over the last two years, the department of company affairs has turned its attention to state-owned units, particularly state-level psus, that have been defaulting in filing their annual returns regularly. in a recent communication, dca directed chief secretaries of states to ensure that psus operating in their states comply with the company law requirement of filing their annual and other statutory reports regularly. letters are understood to have been sent to psu chiefs asking them to ensure their companies comply with the provision of the company law. top government sources said the dca has been receiving a large number of applications from psus, many of them sent through chief secretaries, seeking relaxation on compliance with the companies act requirements. “it has become a matter of routine for several psus,� said sources. “there are several psus which file their returns as much as four years late. we want to put an end to this practice. the psus should be seen as setting standards in compliance,� this source added. under normal circumstances, companies are required to file their annual returns with the rocs within 60 days of date of annual general meetings. the dca started its drive to ensure that companies file their annual returns on a regular basis with the launch of an amnesty scheme in may ’00 and simultaneous amendments to the companies act. while a sizeable number of corporate entities opted for the amnesty scheme to update their records with the registrar of companies and thereby avoid prosecution, several psus continued to default. under the amended companies act provision, directors of entities which fail to file their returns for any three continuous years beginning april ’99 can be disqualified from being appointed director in another company for up to five years.