Excelsior Correspondent
JAMMU, May 19: In an enforcement action, Registrar of Companies (ROC) J&K, Jammu has issued notices to all the Nidhi companies incorporated in J&K warning them to ‘show cause’ as why they should not be prosecuted for violating the relevant laws as they are not authorised by the Central Government to function as Nidhi and collect money.
The ROC notices have been issued possibly on the inputs shared by market intelligence and in collaboration with sister enforcement agencies,
Nidhi companies are NBFCs and they are incorporated to collect and lend the money amongst their members. They are supposed to file their half yearly returns with the ROC and it is reliably learnt that such returns called as NDH-4 have not been filed.
In 2013, ROC J&K had raided the premises of a Nidhi company operating from Jalandhar during an inspection and later filed a detailed report with the Central Government recommending stringent provisions against the fraudulent company and its directors. This is seen as first such action on the part of ROC.
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