Registrar of Companies hauls up KKR and RR
The Shah Rukh Khan and Jay Mehta promoted Knight Riders Sports Private Ltd, along with Jaipur IPL Cricket Pvt Ltd, promoted by Lalit Modi’s brother-in-law, Suresh Chellaram, have been pulled up by the Registrar of Companies (RoC), Mumbai for violation of the Companies Act.cricket Updated: Apr 27, 2010 00:17 IST
The Shah Rukh Khan and Jay Mehta promoted Knight Riders Sports Private Ltd, along with Jaipur IPL Cricket Pvt Ltd, promoted by Lalit Modi’s brother-in-law, Suresh Chellaram, have been pulled up by the Registrar of Companies (RoC), Mumbai for violation of the Companies Act.
The RoC, which was asked by the ministry of corporate affairs to look into the filing of details by each franchise of the IPL, has issued show cause notices to the two firms for not filing their annual accounts and returns on time.
The notices were issued under sections 162 and 168 of the Act.
These companies have also been asked by the RoC to furnish more details relating to IPL franchise agreements. In case of delays providing details, the RoC has warned that ‘criminal proceedings could be initiated against the companies and their directors’.
Jaipur IPL, which owns the Rajasthan Royals, has already been pulled up by the Enforcement Directorate for alleged violations under the Foreign Exchange and Management Act (FEMA) in respect of transactions relating to financial payments.
Senior government officials said the Serious Frauds Investigation Office (SFIO), an arm of the ministry of corporate affairs, dealing with the investigation of serious financial irregularities, could be roped in to carry out an investigation; the entity could be facing charges of doctoring information.
“The RoC is also looking into the records of other franchises and a detailed report on each team is expected within a week,” an official said.
The RoC is also examining the shareholder agreement, memorandum of association, incorporation documents and other mandatory filings of each of the franchises.
RoC has also been asked to specify any information on sweat equity offered and if there are any violations of the existing norms under the Companies Act.