Probing 154 companies for financial frauds: Sachin Pilot

NEW DELHI: The government is looking into complaints of financial frauds against 154 companies including those connected with Saradha Group and Rose Valley Group, Parliament was informed today.


"Complaints have been received against 154 companies/ organisations during the last three years," Corporate Affairs Minister Sachin Pilot said in a written reply to the Rajya Sabha.

Pilot said his ministry has ordered probe of the balance sheets and other documents in these cases.

"Some cases have been referred to the Economic Offences Wing of the concerned state government for further investigation," he added.

As per the list provided by the Minister, complaints of financial fraud have been received against 10 Saradha Group entities such as Saradha Realty, Saradha Agro Development, Saradha Exports and Saradha Garden Resorts & Hotel.

Besides, the list includes names of 14 entities related to Rose Valley Group including Rose Valley Industries, Rose Valley Marketing and Rose Valley Hotels and Entertainment.

Vaishnavi Corporate Communication, Speak Asia, Reebok India, Alchemist Infra are among the other companies against whom complaints have been received, according to the list.

On steps initiated by the government to detect corporate wrongdoings, Pilot said the ministry is in the process of developing an early warning system to identify cases of frauds or potential frauds at the earliest.

"Pilot testing of the system is expected to be completed during 2013-14," the Minister said.

In addition, Pilot said various measures had been undertaken to protect the investor' interests through programmes on awareness and education.

Some of these steps include issue of multi-lingual print media advertisements from time to time to caution the investors about fraudulent investment schemes, creation of facility on MCA-21 website for lodging complaints and for tracking their status and a system of sending SMSes cautioning investors to be careful while making investments.