MLM News

Tag: Speak Asia Section 591

  • MCA orders investigation on Speak Asia

    MCA orders investigation on Speak Asia.

    New Delhi (mlmnewblog) – The Registrar of Companies (RoC) has been given go ahead by the ministry of corporate affairs (MCA) to investigate Speak Asia. The same was also confirmed by D.K. Mittal, secretary, MCA. He said that an investigation has been initiated but the top officials of Speak Asia denied that it had received any communication till date from MCA, ROC or any other government agency.

    Earlier MCA could not probe Speak Asia due to its registration outside India, now the issue has been resolved and a fresh investigation is being launched on Speak Asia.

    “Since Speak Asia is not registered in India, an inquiry under section 591 of the Companies Act, 1956, which deals with companies not registered in India, has been ordered and accordingly the RoC will investigate,” said the MCA officials.

    The investigation will be done under RoC Delhi team where they will be assisted by the deputy RoC, Mumbai.

    The aspects ROC will look into:-

    • Why has it not registered with MCA so far.
    • What are its investments.
    • How is it conducting its business.
    • Where is the money coming from.
    • How is it paying to the members, etc.,
    The report will be finished within three months and after that final report will be submitted to the ministry of corporate affairs (MCA), who there after will decide what action has to be taken.
    Our Take: There will be further delay in the payments to the panelists of Speak Asia as company will say that investigation is going on. There are two versions to the same story, one is given by Speak Asia and another by its members. We feel both should be called upon during the investigation to get the right picture. There is strong possibility that company might be able to get away with mild penalties but ultimately panelist will feel cheated in the process.

  • ROC Report on Speak Asia

    New Delhi (mlmnewsblog) – Registrar of Companies (ROC), under Ministry of Corporate Affairs submitted its report on Speak Asia Online. In the report ROC found that Speak Asian Online Pte. Ltd. a Singapore based company Violated Section 591 in The Companies Act, 1956 according to the act, companies who are incorporated outside India and Still doing business in India, must get permission and registration from ROC before doing business in India.

    After this report, ROC will call top company officials for an Inquiry and will start investigation from the beginning and will submit final Report within 90 days. On the other hand, Reserve Bank Of India (RBI) has given permission to Speak Asia to transfer pending money to all the investors and a circular has also been issued to the banks to help in facilitation. RBI also said that during the mean time Speak Asia cannot operate and do business in India, unless they pay off all the investors. if Speak Asia agree to do that, then only Speak Asia can apply for the fresh registration.

    Now the big question is, will Speak Asia pay the money they owe to the investors or will they wait for 90 days to see the final report by ROC.

    Our Take: Speak Asia had earlier said that they want to transfer the money into panelist bank account but due to RBI intervention they could not to that. Now the permission has been granted by RBI to Speak Asia to start the transfer, then this time there should not be any excuse from company’s top officials. If things does not improve then there could be something ” Dal mein kuch kala hai”