Special agency to probe 100 companies held by Mayawati's brother

NEW DELHI: The Registrar of Companies, which is carrying out a probe into over 100 companies held by Bahujan Samaj Party chief Mayawati's brother, Anand Kumar, has advised the corporate affairs ministry to refer the matter to a specialised agency.

The registrar has noted, in a communication to the corporate affairs ministry, on December 24, that allegations against Kumar are of a "very serious nature" and appear beyond its (RoC) domain, documents seen by ET reveal.

Last Monday, ET had reported that a clutch of companies controlled by Kumar had carried out cash transactions worth about 760 crore, raising questions about source of money.

Under Section 234 of the Companies Act, RoC can ask a company to furnish information or explanation while examining its books. The corporate affairs ministry had sought from RoC a detailed report on Kumar's companies after it received a representation last year from four Members of Parliament of BJP, who alleged that these companies were involved in transactions involving large sums. The corporate affairs ministry send RoC a reminder on Jan 31, asking it to 'expedite' examination of companies concerned and submit a final report on a priority.

RoC identified 112 companies, 93 registered in Delhi and Haryana, and 3 in Kanpur and Uttarakhand. The registrar has informed the ministry that it is scrutinising the accounts of Kumar's flagship company, Hotel Library Club Private Ltd, which owns the Shilton hotel in Mussoorie. Most of the money in Kumar's companies came in through the issue of shares at a huge premium, creation of cash reserves as a result of forfeiture of advances paid to companies by third parties, sale of undisclosed investments and issue of dividends.