CAG criticises MCA for poor co-ordination with Sebi, RBI
December, 28th 2006
Comptroller and auditor general has slammed the ministry of company affairs (MCA) for non-coordination with other regulators like Sebi and RBI. No institutional mechanism for coordination of activities and information with data of statutory bodies such as Sebi and RBI was in place, CAG said in its report for the year ended March 2005.
Citing an example, the country's top auditor said 303 companies were found working as NBFCs in Shillong, Orissa and Rajasthan without being registered with RBI. Further, CAG said as per the data provided by registrar of companies, Delhi, 1274 non-banking companies were registered with it as on January 2006 even as data provided by RBI indicated that 2438 such companies were at work, it said.
Thus, ROC had failed to identify the companies which were working as NBFCs without registration with RBI and the foreign companies though registered with RBI were not registered with ROC, Delhi, it noted.In its reply, the ministry admitted that there was need for improved co-ordination.Cag also noted there was non-realisation of fee amounting Rs seven crore from 1,400 foreign companies which defaulted in filing statutory papers on time.