The registrar of companies (RoC), Bangalore, may soon be called upon to undertake a technical scrutiny of the book of accounts of S36 Sports and Entertainment, the company owned and promoted by cricketer S Sreesanth. The company?s name has come under the scanner after its incorporation paper revealed that Sreesanth wanted to open betting houses through the company. Sreesanth along with two other cricketers are in police custody after being found involved in spot-fixing in at least three matches of the ongoing Indian Premiere League (IPL).
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Sources said RoC Bangalore, the city where S36 Sports is registered, will undertake a technical scrutiny of the book of accounts of the firm under Section 234 of the Companies Act, 1956. The police is going to seek the help of the corporate affairs ministry in this regard, sources said.
According to initial screening of the company?s filing with the RoC, it appears that S36 Sports and Entertainment received R18.45 lakh as ?unsecured loan? in 2010-11. It also posted a profit of R7.8 lakh. However, the company has not filed the mandatory papers for the financial year 2011-12 and 2012-13.
Section 234 deals with the power of the registrar to call for information or explanation from the company.
?All aspects related with the three cricketers and the bookies is under investigation. If need be, the enforcement directorate, department of revenue or the central tax authorities will be roped in,? a senior police official said.
Sources said the details of investors may be sought from the present management of S36 Sports and Entertainment in which Sreesanth was one of the three directors.
In a related development, the Union sports minister Jitendra Singh said that there was an urgent need to put in place a system that will keep in check such incidents (spot-fixing) from happening in any sports. Sources in the sports ministry said the government is looking at a provision whereby all sportsmen will need to disclose to their respective boards what companies they own along with details of their activities.
