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Oommen Chandy, business tycoon Yusuff Ali in list of disqualified shell firm directors

  •   Wed, Sep 20 2017 10:06:33 PM

New Delhi, Sep 20 (Outlook): Former Kerala Chief Minister Oommen Chandy, Leader of the Opposition in the state Assembly Ramesh Chennithala and Gulf-based business tycoon M.A. Yusuff Ali figure in the Centre’s list of disqualified directors of ‘shell companies.

The list uploaded on the website of the Ministry of Corporate Affairs (MoCA) is seen as part of an exercise by the government to make public the lists of disqualified directors across the nation to name and shame them.

A statement by the ministry had earlier said that it had zeroed in on more than one lakh directors for disqualification as of September12 for associating with companies that had not filed financial statements or annual returns for three straight years.

From Kerala, several businessmen, leading politicians, top civil servants, and police officers have figured in the list. The list, examined by Outlook, shows that Chandy and Yusuff Ali have been disqualified due to their association with Norca-Roots, a Kerala government company which plays a key role in firming up policies and strategies for the welfare of non-resident Keralites. It filed the last balance sheet in 2013.

Chennithala figured in the list due to his post in the Congress-run newspaper in Malayalam, Veekshanam.

When contacted by Outlook, Congress MLA and the current Managing Director of Veekshanam, P.T. Thomas said that there are some "technical confusions" regarding the decision and added that Centre’s move will not affect the functioning of the newspaper.

According to a report by The Hindu, so far, the maximum number of disqualified directorships is from Delhi (74,920), followed by Mumbai (66,851), Hyderabad (41,156), Ernakulam (around 14,000), Cuttack (13,383), Ahmedabad (10,513), Gwalior (9,628), Pune (4,449), Puducherry (1,605), Himachal Pradesh (1,363), Coimbatore (1,299), Shillong (1,290) and Chhattisgarh (889).

The disqualified directors will not be eligible for re-appointment as a director in that company or for appointment in other companies for five years from the date of non-compliance.
  

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Comment on this article

  • Aditi Pawde, Pune

    Thu, Sep 21 2017

    @Mangalurian,

    I agree with you that if govt. would had charged a fine for each defaulting year, they would had earned some money. However, such provision is not present in Companies Act. It would had taken longer to make such provision and then take action.

    Companies Act does not even have definition of a shell company. Current actions are for those companies who have been defaulters in annual filings for 3 consecutive years. Appropriate term for such companies is 'dysfunctional' or 'dysfunct' companies.

    Out of these 2.09L dysfunct companies some could had been formed out of speculative mind as stated by you. However, higher possibility is that they were used as vehicles for money laundering and then left non-operational as it is quite tedious to dissolve a company as per Companies Act. Disqualification of directors of these companies and freezing their bank accounts would make sure that they do not indulge in any unlawful activity for next 5 years and gives enough time for investigations.

    It would be interesting to know in coming years how many of these 3L disqualified directors turn up to get rid of their tainted image. Moreover, in my opinion, Companies Act indeed needs an amendment.

    DisAgree Agree Reply Report Abuse

  • Jossey Saldanha, Mumbai

    Thu, Sep 21 2017

    What about Albani & Aldani ...

    DisAgree [2] Agree [4] Reply Report Abuse

  • Mangalurian, Mangaluru

    Thu, Sep 21 2017

    P P Chaudhary, the Central Minister of State for Corporate Affairs, states: “The fight against black money shall be incomplete without breaking the network of shell companies. Possibility of using the Shell companies for laundering the black money cannot be undermined”.

    And the rule (Companies Act, Section 164/2/a) under which almost 99% of the directors have been disqualified: "director in a firm that has not filed financial statements or annual returns for three consecutive financial years".

    Instead of disqualifying the directors merely for not filing the reports, imagine if the directors were fined for each defaulting year! The Government would have earned a tidy sum.

    Many people set up "shell" companies (and hence become directors) with a speculative mind. That is how any business is built. Not because they have a "current" product or service to offer, but just have an idea to do something in the "future". Obviously nothing is sold, and no income generated. So, in a vast majority of the cases, forget about the black money, there is no white money either.

    So why does the Government REALLY need the reports - other than to satisfy the babus' power?

    Most Governments in 1st world countries (and places like Israel) encourage such a speculative entrepreneurship because speculation is the seed of private enterprise.

    But the Indian Government, run by the babus and the "Yale visitors" is doing exactly the opposite!

    The babus do not know how to generate employment. They do not have respect for the private enterprise. The babus are utterly disdainful of persons engaged in the informal sector.

    By killing the speculative mind, the Government is killing the future of entrepreneurship.

    DisAgree Agree [2] Reply Report Abuse

  • Aditi Pawde, Pune

    Thu, Sep 21 2017

    @Mangalurian,

    I agree with you that if govt. would had charged a fine for each defaulting year, they would had earned some money. However, such provision is not present in Companies Act. It would had taken longer to make such provision and then take action.

    Companies Act does not even have definition of a shell company. Current actions are for those companies who have been defaulters in annual filings for 3 consecutive years. Appropriate term for such companies is 'dysfunctional' or 'dysfunct' companies.

    Out of these 2.09L dysfunct companies some could had been formed out of speculative mind as stated by you. However, higher possibility is that they were used as vehicles for money laundering and then left non-operational as it is quite tedious to dissolve a company as per Companies Act. Disqualification of directors of these companies and freezing their bank accounts would make sure that they do not indulge in any unlawful activity for next 5 years and gives enough time for investigations.

    It would be interesting to know in coming years how many of these 3L disqualified directors turn up to get rid of their tainted image. Moreover, in my opinion, Companies Act indeed needs an amendment.

    DisAgree Agree Reply Report Abuse

  • hindu, Kudla

    Thu, Sep 21 2017

    Oommen Chandy is an Indian politician of the Indian National Congress who was the Chief Minister of Kerala from 2004 to 2006 and again from 2011 to 2016. He was also Leader of the Opposition in the Kerala Legislative Assembly from 2006 to 2011

    sent money to the high command too!!

    shame on congis looting us
    Shame on people supporting them

    DisAgree Agree [3] Reply Report Abuse

  • SB, Mlore

    Wed, Sep 20 2017

    Any scam that doesn't have Congress imprint s in it!

    When Y Ali"... Supported Modi ... We knew he had some intrests to share..or to hide .

    Not surprised.

    DisAgree Agree [7] Reply Report Abuse


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