The Mumbai regional office of Ministry of Corporate Affairs (MCA) has recommended prosecution action against companies owned by Deepak Kochhar, the husband of former ICICI BankNSE -0.92 % CEO Chanda Kochhar, and Videocon chairman VN Dhoot. This, after the department found instances of what an internal report describes as deliberate acts of omission and concealment of facts. The report clams that some financial statements and certificate were false or omitted certain material facts.
An official familiar with the report said that the MCA has found that the actions of the firms were violative of sections 447, 448 and 449 of the Companies Act, which basically deal with punishment of fraud. “Irregularities were observed in the conduct of board meeting. In some of the financial statements and annual reports submitted the disclosures were inadequate or misleading. Some members of the board were suspected to be shadow directors, all these amount of prosecution under certain sections of the Companies Act and the same has been recommended,” said the official to ET. He was referring to alleged action of Deepak Kochhar’s companies as well as Videocon.
