Contravention Of Companies Act: ROC Ahmedabad Issues Notice To Mohammed Zubair And Other Directors Of Pravda Media Foundation

The Assistant Registrar of Companies, Gujarat has issued a notice to Mohammed Zubair and other Directors of Pravda Media Foundation after it received a complaint against the affairs of the Company.

Pravda Media Foundation is the parent company of Alt News, which claims to be a fact-checking website.

The notice directs Pravda Media Foundation to submit comments/explanations on each point of allegation along with documentary proof within 15 days.

The notice further states that on failure to do so, penal action as contemplated under Section 447/448/449  or other relevant contravened provisions of the Companies Act 2013 would be initiated against the Company and its directors.

Section 447 of the Companies Act 2013 deals with punishment for fraud.

Section 447 states that- "Without prejudice to any liability including repayment of any debt under this Act or any other law for the time being in force, any person who is found to be guilty of fraud, shall be punishable with imprisonment for a term which shall not be less than six months but which may extend to ten years and shall also be liable to fine which shall not be less than the amount involved in the fraud, but which may extend to three times the amount involved in the fraud:

Provided that where the fraud in question involves public interest, the term of imprisonment shall not be less than three years."

Section 448 of the Companies Act 2013 deals with punishment for false statement.

Section 448 states that- "Save as otherwise provided in this Act, if in any return, report, certificate, financial statement, prospectus, statement or other document required by, or for, the purposes of any of the provisions of this Act or the rules made thereunder, any person makes a statement,— (a) which is false in any material particulars, knowing it to be false; or (b) which omits any material fact, knowing it to be material, he shall be liable under section 447."

Section 449 of the Companies Act 2013 deals with punishment for false evidence.

Section 449 states that- "Save as otherwise provided in this Act, if any person intentionally gives false evidence— (a) upon any examination on oath or solemn affirmation, authorised under this Act; or (b) in any affidavit, deposition or solemn affirmation, in or about the winding up of any company under this Act, or otherwise in or about any matter arising under this Act, he shall be punishable with imprisonment for a term which shall not be less than three years but which may extend to seven years and with fine which may extend to ten lakh rupees."

Click here to read/download notice