'232 cr fees due from cos for non-filing of return'

New Delhi, Jan 7: Annual returns were not filed by companies in asmany as 9,04,709 cases resulting in non-collection of Rs 25.42 crore infees besides additional fees of Rs 207.21 crore, according to thelatest Comptroller and Auditor General report.

Most of the companies which defaulted in filing their annualreturns were from West Bengal (2,34,132), Delhi and Haryana (2,20,701)and Maharashtraa (1,95,691), the CAG said in its report for 2004-05.

Under the Companies Act 1956, every company has to prepare andfile the annual return with the Registrar of Companies (RoC) within 60days from the holding of the Annual General Meeting.

Failure to comply with this attracts payment of additional feesthat are higher by one to nine times of the normal filing fees and fineof Rs 500 for every day of the default.

According to CAG, initiation of prosecution against the defaultingcompanies in West Bengal, Maharashtra, Andhra Pradesh, Goa, Delhi andHaryana, for which information was available, was "very poor".

Altogether, prosecution was launched against 4,170 companies bythe RoCs in 2000-01, 3,460 in 2001-02, 3,657 in 2002-03, 2,626 in2003-04, and 3,395 cases in 2004-05. But this comprised just one percent of the defaulting companies and cost the exchequer Rs 232 crore inunrealised revenues, noted the report.

However, the Ministry of Company Affairs in its response to theCAG, said the filing fees and additional fees would be recovered as andwhen the companies concerned came forward to file any document with theRoCs.

In the view of CAG, the ministry needed to put in place amechanism to ensure that notices were served in time on defaultingcompanies for recovery of revenue due to the government. It furtherrecommended that the ministry consider taking action to correct thesystemic issues including carrying out revisions as required to theCompanies Act.

UNI>