Srinagar, May 18: In an enforcement action, possibly on the inputs shared by market intelligence and in collaboration with sister enforcement agencies, ROC J&K, Jammu issued notices to all the Nidhi Companies incorporated in J&K warning them to ‘show cause’ as why they should not be prosecuted for violating the relevant laws as they are not authorised by the Central Government to function as Nidhi and collect money, an official statement said.
Nidhi companies are NBFCs and they are incorporated to Collect & lend the money amongst their members.
They are supposed to file their half yearly returns with the ROC and it is reliably learnt that such returns called as NDH-4 have not been filed.
In 2013, ROC J&K raided the premises of Nidhi Company operating from Jalandhar during an Inspection and later filed a detailed report with the Central Government recommending stringent provisions against the fraudulent Company and its directors. This is seen as first such action on the part of ROC.
