DDCA © Getty Images (Representational Photo)
DDCA is registered under Companies Act © Getty Images (Representational Photo)

New Delhi: The Corporate Affairs Ministry has ordered inspection of records of Delhi and District Cricket Association (DDCA) under the new companies law following complaints of alleged irregularities. Earlier, the ministry had found some violations of companies law by DDCA under the old laws. “Further complaints have been received in the Ministry and inspection under section 206 of the Companies Act, 2013 has been ordered on March 27, 2015,” Minister of State for Finance Jayant Sinha said in a written reply to the Lok Sabha. He was responding to a query on whether there have been further complaints of malfeasance, maladministration, manipulation of records, irregularities, corruption in DDCA which have been brought out by the Internal Audit Report and Internal Inquiry Report.

In September 2012, the ministry had ordered inspection of the books of account and other records of DDCA under Companies Act, 1956. The inspection report had indicated violations of various provisions of that Act, the minister said.

“All these offences are compoundable. Inspection report revealed that four directors were functional directors who were actively involved in day to day functioning of the company and were named as officers in default by the Registrar of Companies [RoC] Delhi in his order dated August 29, 2014. These officers are Sunil Dev, S P Bansal, Narinder Batra and C K Khanna,” Sinha said.

The company and officers in default had applied for compounding of the offences and the same were forwarded by the RoC to the Company Law Board, he added. “Prosecution has been filed against the statutory auditor of DDCA for non-compliance of the provisions of section 227, read with section 233 of the Companies Act, 1956. Besides, a complaint had been filed against the statutory auditor with the Institute of Chartered Accountants of India,” the minister said.

The 1956 Act had the concept of ‘officer in default’. The Companies Act, 1956 has now been replaced by Companies Act, 2013.