Friday, November 18 2005 17:42 Hrs (IST) - World Time -

New Delhi: Company Affairs Minister P C Gupta today (Nov 18, 2005) said Indian companies named in the Volcker Committee report could not have possibly violated company law.

"On the face of it, this does not seem possible," Gupta said at the Economic Editors Conference here, when asked if Indian companies named in the report had violated company law provisions.

Asked whether the Ministry has launched any probe into the matter, he said no such action has been taken. "I have just asked my officers to look if any violation of Company law has been made by any of the companies named in the report".

The 623-page UN enquiry report by former US Federal Reserve Chairman Paul Volcker has named more than 100 Indian companies, which include STC, Tata International, Hamdan Exports, Kirloskar Engines, Ajanta Pharma, Mohan Exports, L T Overseas Ltd, Jord Engineers and National Electrical Industry.

These companies are alleged to have paid kickbacks for getting business under UN's Oil-for-Food Programme.

The issue has snowballed into a major controversy following the naming of the Congress Party and its senior leader Natwar Singh as beneficiaries in the report. While Singh had to step down as External Affairs Minister after this, the government has ordered a judicial probe into the matter headed by former Chief Justice R S Pathak.

Finance Minister P Chidambaram has said a few companies named in the report had been asked to share their records and information. Official sources, however, say the Tax department is looking into the books of 125 Indian companies named by Volcker for possible tax evasion.