SRINAGAR: The Registrar of Companies (ROC), Jammu and Kashmir, has issued show-cause notices to all Nidhi companies incorporated in the Union Territory, warning them to explain why prosecution proceedings should not be initiated against them for alleged violations of relevant laws, according to an official statement.
The action was taken as part of an enforcement drive, reportedly based on market intelligence inputs and carried out in coordination with sister enforcement agencies.
According to the statement, the companies have been accused of functioning as Nidhi entities and collecting money without authorisation from the Central Government.
Nidhi companies function as Non-Banking Financial Companies (NBFCs) and are primarily established to accept deposits from and lend money to their members.
The statement said these companies are required to submit half-yearly statutory returns, known as NDH-4 forms, to the ROC. However, it was reliably learnt that the mandatory filings had not been submitted.
The statement also referred to an earlier action carried out by the ROC JK in 2013, when officials conducted an inspection at the premises of a Nidhi company operating from Jalandhar. Following the inspection, a detailed report was submitted to the Central Government recommending stringent action against the company and its directors over alleged fraudulent activities.
Officials described the latest move as a significant enforcement action by the ROC in Jammu and Kashmir.
