Topline Shoes managing director H M G Murthy on Thursday alleged that the charges against the company are aimed at defaming him and his associates without any proper charge on any of the six directors including legendary cricketer Sunil Gavaskar.
Vanishing firms: Police case against Gavaskar
"The Registrar of Companies, with a view of scandalising the matter and to deliver disadvantage to the company, have registered the first information report. Under the circumstances, kindly close the enquiry and follow the prescribed procedure in the matter," said Murthy.
Last week the Vadodara police had registered a criminal case against all the six directors of the Topline Shoes, which was identified as one of the 122 vanishing companies by the Department of Company Affairs.
According to Murthy, the Vadodara city police have no jurisdiction to handle the case and carry on investigation in the matter.
The RoC had lodged a complained against six directors of TSL last week including Murthy (a 41 per cent stake holder) and Sunil Gavaskar, for alleged fraud of Rs 4.65 crore (Rs 46.5 million) with the company's share holders.
Murthy, in a letter, calls himself an 'agent of the company' in the capacity of a managing director and not an agent of the shareholders. Hence the provisions of Section 409 can be invoked only in a criminal complaint to which the company is a party on the complaining side.
It is the duty of the RoC to provide proof for Murthy abusing his duties and responsibilities as an agent before initiating prosecution.
With reference to the charges under Section 420 of the Indian Penal Code which is to deal with any kind of cheating, the letter says for a transaction such as share issue, in which the TSL is involved, it cannot be said that the money paid by the respective shareholders was credited into the account of Murthy, unless proof in this regard is provided.
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