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Gadkari's Purti group gets notice for Companies Act violation

First published: November 20, 2012, 8:35 AM IST | Updated: November 20, 2012
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Gadkari's Purti group gets notice for Companies Act violation
In its inquiry the Registrar of Companies found that Purti had issued 1.27 crore shares to over 7,000 people and entities.

New Delhi: There seems to be more trouble for Bharatiya Janata Party (BJP) President Nitin Gadkari. Three weeks after the Corporate Affairs Ministry ordered a discreet inquiry into the books of Purti group, the company floated by the BJP President, CNBC-TV18 has learnt that the Registrar of Companies has sent a notice to Purti for the alleged violation of the Companies Act.

In its inquiry the Registrar of Companies found that Purti had issued 1.27 crore shares to over 7,000 people and entities. This, it feels, may have breached the Act that sets a 50 per cent cap on such private placements.

Another bone of contention is how Global Safety Vision with a paid-up capital of Rs 35,000 gave a loan of Rs 164 crore to Purti.

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