RoC recommends action against Maytas' Teja Raju, auditors

Registrar of Companies (ROC) has presented a dismal state of affairs for Maytas Infra in its inspection report submitted to the Ministry of Corporate Affairs. The violations primarily relate to the misrepresentation of the balance sheets by the company. The report alleges that they do not give a fair and true view of the nature or the status of the company's finances. CNBC-TV18's Pranshu Sikka reports.

Here is a verbatim transcript of Pranshu Sikka's comments on CNBC-TV18. Also watch the accompanying video.

The Registrars of Companies has alleged violation of multiple company law provisions by both the company as well as its Vice Chairman B Teja Raju. The violations primarily relate to the misrepresentation of the balance sheets by the company. The report alleges that they do not give a fair and true view of the nature or the status of the company's finances. Also there are allegations that the company gave projects to Maytas Property and Hill County in violation of Company's Act besides taking various bank guarantees for loans given to other companies which was also in violation of Company's Act.

As far as the recommendation of prosecution is concerned, prosecution has been recommended for B Teja Raju as well as for the auditors who the RoC alleges have not been able to carry out the duties which were entrusted to them.