Rs232cr fees due from cos for non-filing of annual return:CAG

New Delhi, Jan 7 (UNI) Annual returns were not filed by companies in as many as 9,04,709 cases resulting in non-collection of Rs 25.42 crore in fees besides additional fees of Rs 207.21 crore, according to the latest Comptroller and Auditor General report.

Most of the companies which defaulted in filing their annual returns 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 and file the annual return with the Registrar of Companies (RoC) within 60 days from the holding of the Annual General Meeting.

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

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

Altogether, prosecution was launched against 4,170 companies by the RoCs in 2000-01, 3,460 in 2001-02, 3,657 in 2002-03, 2,626 in 2003-04, and 3,395 cases in 2004-05. But this comprised just one per cent of the defaulting companies and cost the exchequer Rs 232 crore in unrealised revenues, noted the report.

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

In the view of CAG, the ministry needed to put in place a mechanism to ensure that notices were served in time on defaulting companies for recovery of revenue due to the government. It further recommended that the ministry consider taking action to correct the systemic issues including carrying out revisions as required to the Companies Act.

UNI