New Delhi, June 1: The government on Monday turned down an opposition demand for "temporary" takeover of Dunlop India but said it would initiate action against the private company for committing "financial irregularities".Answering several supplementaries during question hour, industry minister Sikander Bakht said the department of company affairs had ordered inspection of books of accounts of Dunlop india under section 209-A of the Companies Act, 1956, based on a complaint from workers union.
In the light of violations and irregularities noticed during inspection, the centre has moved a petition under section 408 of the Companies Act before the Company Law Board for appointment of government directors on the board, Bakht said adding that "the matter, at present, is subjudice."
He said section 18-AA of the Industries (Development and Regulation) Act, 1951, provided for taking over of industrial undertakings by the central government in certain cases. The policy of the government of India was not totake over any sick unit under the provisions of the Industrial (Development and Regulation) Act, he said. "As such, there is no proposal to take over the company under section 18-AA of the IDR Act."
Copyright © 1998 Indian Express Newspapers (Bombay) Ltd.
