Teesta Setalvad flouts Companies Act, 1956 & Foreign Contribution Regulation Act, 2010, complaint filed by leading Advocate

Above: Communalism Combat published by Sabrang

1. Leading Advocate Sanjiv Punalekar has made a complaint to Ministry of Home Affairs, Foreigners Division vide a letter dt. 13.8.2013 highlighting the following violations of the Foreign Contribution Regulation Act (FCRA), 2010 and Companies Act, 1956 by Teesta Setalvad and her husband Javed Anand as Directors of Sabrang Communications & Publishing Pvt. Ltd., publishers of Communalism Combat:

a.) As per Section 3(1)(b) of the FCRA, no one can receive foreign contributions from abroad if such person is correspondent, columnist, cartoonist, editor, owner, printer or publisher of a newspaper.

b.) That the annual reports of Ford Foundation on their official website show that this company received foreign aid of US Dollars 90,000/- in the year 2004 and USD 2,00,000/- in the year 2006.

c.) The directors of the company Sabrang Communications & Publishing Pvt. Ltd. have violated FCRA and are liable for prosecution for taking donations from abroad despite owning a newspaper / magazine in India.

d.) It is clear that while obtaining registration for FCRA, they have suppressed the fact of their owning a newspaper / magazine and have obtained registration by fraud. Therefore on this count also they are liable for prosecution carrying punishment by imprisonment as well as fine.

e.) The company has also not filed balance sheet and annual returns for past three years with the Registrar of Companies and is liable for prosecuting under the Companies Act, 1956.

2. On 13.8.2013 another letter was written by Sanjiv Punalekar to the Registrar of Companies (ROC, Mumbai), the Regional Director of Ministry of Corporate Affairs (Western Region) and the Ministry of Corporate Affairs and Ministry of Home in Delhi, highlighting the Companies Act, 1956 violations by Sabrang Communications & Publishing Pvt. Ltd. including:

a.) The company is in default for not filing Balance Sheets for the years 2010-11, 2011-12 and 2012-13. That neither annual returns have been filed nor Annual General Body meeting has taken place.

b.) That Under Section 162 read with Section 220 of the Companies Act, 1956, the company and its directors have rendered themselves liable for prosecution.

c.) That the company be declared a 'defunct' company.

3. On 20.8.13 the office of the Regional Director of Ministry of Corporate Affairs (Western Region) directed the ROC, Mumbai to take action in the matter.

4. On 9.9.13 Sanjiv Punalekar again wrote to the Regional Director of Ministry of Corporate Affairs (Western Region) that no action was taken by ROC, Mumbai in the matter and that stern action be taken against him.

Also View: Evidence Against Teesta Setalvad