The corporate affairs ministry has designated eight courts in different states and union territories as "special courts" for speedy trials of serious corporate offences.
Under Companies Acts, 2013 special courts were supposed to set up in every state so that it could deal with Corporate cases in which the punishment for the offence is of at least two years. The eight courts are in Maharashtra, Jammu and Kashmir, Goa, Gujarat, Madhya Pradesh, West Bengal and two in union territories.
The Government got the consent from Chief Justice of respective high courts and the hearings will start soon. There are over 50,000 cases pending with corporate cases but only 5,000 are serious offences in which the punishment will be of two years or more. The government was of the view that the number of special cases won't be too high after the softening of provisions in the Companies Act so it will be wiser to bring more special courts into existence.
The amendments to the Companies Act have done away with the provision which would have made it impossible for a person accused of violating the law to get bail. Another bill proposing more amendments to the law has been referred to a parliamentary committee.
It's a summarization of an article Rajat Arora. For more details, visit http://economictimes.indiatimes.com/news/economy/policy/corporate-affairs-ministry-designates-eight-special-courts-to-hear-serious-corporate-cases/articleshow/52369209.cms