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dainik Savera, 22Oct 2012

SpeakAsia probe may take more time

SpeakAsia probe may take more time
Last Updated: Sunday, October 21, 2012, 13:15

Link : http://zeenews.india.com/business/news/companies/speakasia-probe-may-take-more-time_62797.html


New Delhi: The Corporate Affairs Ministry has indicated that completion of the probe into alleged scam at SpeakAsia could take more time due to legal hurdles.

The Serious Fraud Investigation Office (SFIO), under the Ministry, is probing the alleged irregularities at Singapore- based multi-level marketing company SpeakAsia.

In response to a Right to Information (RTI) query on the issue, the Ministry said the time frame for completing the SpeakAsia probe is yet to be quantified.

"Investigations into the affairs of the company SpeakAsia Online Pvt Ltd is not yet complete and due to various legal issues involved in conducting investigation of a foreign company having operations in India, the time frame for completion has not been quantified," the Ministry has said.

As of now, there is no clarity on whether it has the powers to probe irregularities of a company, which is registered overseas, but has operations in India as well.

The investigation agency is awaiting clarifications on the issue from the Corporate Affairs and Law Ministries.

SFIO, set up to probe corporate frauds under the provisions of Companies Act, began investigations into SpeakAsia after an alleged scam came to light early last year.

The agency takes up only those cases that are referred by the Corporate Affairs Ministry.

Under the existing Companies Act, there is no clarity on whether Indian authorities have powers to probe an overseas entity having operations in the country. However, this issue has been addressed in the new Companies Bill, which is likely to be discussed in the Parliament soon.

In the new Companies Bill, clause 228 provide powers for authorities to look into affairs of overseas companies having operations in India.

As per the Bill, "This is a new clause and seeks to provide that the provisions relating inspection or investigation under Chapter XIV shall also apply mutatis mutandis to inspection or investigation of foreign companies".

Chapter XIV is related to inspection, inquiry and investigation of companies.

According to its website, SpeakAsia is not registered as a company in India as it is not a permanent establishment (PE) here.

Processing of the Exit Option

05/10/2012
Dear SpeakAsians,
As per the recent Order passed by the Hon’ble Supreme Court, the mediation proceedings have come to an end. However, SpeakAsia continues to stand by its commitment for releasing the payment to its panelists. It is therefore putting in motion the execution of its exit policy and as an initial step, SpeakAsia will be executing the payouts for a test batch of panelists.
This exercise should take a couple of weeks as confirmation e-mails would be sent first to those panelists and then the amounts would be transferred upon receipt of confirmation. After successful execution of the test batch, we will initiate the rest of the payout based on the data available with us as per the exit option. Should we face any difficulties in executing the payouts, we will then approach the concerned authorities to seek remedial solutions. We will also keep all of you posted on the developments as it happens.
We thank you for the patience shown till date and request you to kindly bear with us as we execute this new effort of ours.

Warm Regards,

SpeakAsia Corporate Marketing Team

http://speakasiaonlinemarketing.blogspot.in/