An inquiry into the books of the Mother Dairy Fruit and Vegetable Private Ltd (MDFVL) has been asked by the government. It is is a wholly-owned subsidiary of the National Dairy Development Board.
On being asked about the losses of MDFVL by Manoj Jha in Rajya Sabha the Minister of State for Finance and Corporate Affairs Anurag Thankur responded by saying, “An inquiry under Section 206 of the Companies Act, 2013 was ordered.”
The Section 206 of the Companies Act gives right to the Registrar of Companies to check and inspect the books of any company or call for any information and set up an inquiry in regard with any company.
The company has shown huge losses Rs.142 Crore and Rs.249 Crore in both the fiscal years of 2019 and 2020.
However, the inquire angle is not known but it might be in relation to a complaint by an individual alleging fraud amounting to about Rs 1,000 crore at the company or linked to investments of Rs 190 crore by MDFVL in IL&FS in August 2018.