RAMAKRISHNA RAJA Vs. REGISTRAR OF COMPANIES

JUDGEMENT

(1.) These Criminal Original Petitions have been filed against the E.O.C.C.Nos:603 to 606 of 2002 on the file of the Additional Chief Metropolitan Magistrate, Economic Offences-II, Egmore Chennai.

(2.) The brief facts of the case are as follows:- The Registrar of Companies at Chennai filed complaints against the Petitioner herein and four others. In E.O.C.C.No.603 of 2002, the allegation is that the petitioner has committed an offence punishable under Section 63(1) of the Companies Act for the reason that the company had issued a Prospectus dated 22.12.1995 filed with the complainant on 2.12.1995 in respect of a public issue of 14,40,000 equity shares of Rs.10/= each for cash at par aggregating Rs.144.00 lakhs and the company had made a statement in the said Prospectus to the effect that it will be implementing projects for investment in bank including bought out deals and future projects in the next three years as issued by the company under the heading "Profitability Projections", but the company did not take any steps to implement the projects referred to in the Prospectus and had thus failed to fulfill the promises made by it to the public while offering shares though the Prospectus issued to the public and thus committed offence as mentioned above.

(3.) In E.O.C.C.No:604 of 2002, the complaint has been made on similar set of facts that the company has committed offence punishable under section 68 of the Companies Act.