Government has ordered prosecution against Jet Airways for alleged violation of various sections of the Companies Act, 1956, on account of financial transactions, including dividend paid out of profits.
Finance Minister Jaswant Singh told the Lok Sabha in a written reply on Friday that the company was inspected under Section 209-A of the Act (under which a company is bound to keep books of account in respect of all sums of money received and expended and the matters in respect of which the receipt and expenditure take place).
The government ordered prosecution for alleged violation of Sections 205 (which prescribes that dividend be paid only out of profits), 224(8) (remuneration of auditors of a company), 292(1C) (power to borrow money otherwise than on debentures) and 211 (8 cases) (form and contents of balance sheet and profit and loss account) of the Act, he said.
Singh said the Jet Airways was incorporated as a private limited company on April one, 1992 and the company became a deemed public company under Section 43A(1A) of the Companies Act on July one, 1996.
The word 'private' was added to the name of the company under Section 43A(2A) of the Act with effect from January 19, 2001, the minister said, adding the company has complied with the requirements of the Act in this regard.
To another question, Singh said there is no case pending against Jet Airways for not depositing income tax and so no action is proposed to be taken.