Section 206. Power to call for information, inspect books and conduct inquiries
(1) Where the Registrar, on scrutiny of any document filed by a company or on any information received by him, is of opinion that further information, explanation or documents relating to the company are necessary, he may by written notice require the company to furnish the information or explanation or produce the documents within such reasonable time as may be specified.
(2) It shall be the duty of the company and its officers to furnish the information or explanation and produce the documents within the time specified or extended.
(3) If no information or explanation is furnished, or if it is inadequate, or if an unsatisfactory state of affairs exists, the Registrar may by another written notice call upon the company to produce further books of account, books, papers and explanations for inspection, after recording reasons in writing.
(4) If the Registrar is satisfied that the business of a company is being carried on for a fraudulent or unlawful purpose, not in compliance with the Act, or investor grievances are not being addressed, he may, after informing the company and giving a reasonable opportunity of being heard, call for information or explanation and conduct such inquiry as he deems fit.
(5) The Registrar may, where appropriate, report the matter to the Central Government for further action.
(6) If the company or an officer contravenes this section, the company and officers in default shall be liable to the penalties prescribed by the section.
