After years of continuous struggle for transparency within the Apparel Export Promotion Council (AEPC), the matter has for the first time reached the Company Law Board (CLB).
Rajiv Kapoor, flag bearer of this struggle and MD of Affordable Exports, Delhi, has filed a petition before the CLB against AEPC and 38 other big names associated with the issue in recent years, including the Textile Secretary and the Commerce Secretary. The hearing on the issue is slated for April 26.
“It is a big success for us to have received permission from the Company Law Board. We hope that any decision in this petition will be a game-changer for the Indian apparel export industry,” Rajiv Kapoor told Apparel Resources.
On the issue of 39 respondents, he is of the opinion that where the Secretary, MoT, Secretary, MoC, Secretary, MoCA (Corporate Affairs), Sunaina Tomar, Jt Secretary, MoT, Kavita Gupta, Textiles Commissioner, Puneet Kumar, SG, APEC are concerned, they are in a position to issue grants and ensure the grants are being utilised properly. The other stalwarts involved in various committees of AEPC are also responsible for all these.
The petition claims that AEPC, in connivance with all the Executive Committee (EC) Members, have from time to time been grossly mismanaging the administrative issues, being negligent in addressing the concerns of small and medium exporters, and have been carrying out illegal activities beyond the objectives enshrined in its Articles of Association of AEPC. The petition also points out that AEPC received grants to the tune of Rs 191.45 crore from fiscal 1989-90 to 2014-15.
The petition also discussed instances of mismanagement and oppression, like unjust enrichment to the EC members of the AEPC, as evident from the annual reports of the Respondent AEPC for the years 2012-13, 2013-14 and 2014-15.
“The EC are not entitled to any remuneration. However a bare perusal of the annual reports would surprisingly show that the AEPC, in its books of account, has shown hefty amounts due or payable by the Executive Members, under the heading ‘Other current liabilities’ inter-alia in the balance sheets and annual reports,” the petition claimed.
It also highlights siphoning of Rs 50 lakh to Apparel-Made–Ups and the Home Furnishing sector skill council by reflecting an amount of Rs 50,000 as ‘Other Expenses’, instead of accounting it as ‘Investments/loans advances’, as evident from the annual report 2013-14. Similarly, it claims illegal accounting treatment of the Earnest Money Deposits forfeited dishonored cheques under the head ‘Non-Current Assets’ (more than Rs 40 crore) to artificially inflate the assets in the annual reports.
According to the petition, the annual reports were not signed by the CEO/Secretary-General of the AEPC, a point that raises serious question on the authenticity of the annual reports. There are many more issues like arbitrary reduction in the rates of rental by chairman (F&B) and Member of AEPC for space rented out by Respondent No. 1 to M/s. Teesta Urja Limited (TUL) at NBCC Tower, Bhikaji Cama Place, New Delhi, causing loss of Rs 20 crore to the AEPC. Undue benefit were also given to the Old World Hospitality, resulting in a loss of more than 20 crore to AEPC.
The petition also requests the termination of voting rights to non-paying members, and sought for them to be placed under the category of registered members. Besides, it also sought to recover the money from the AEPC, which has been “siphoned off” or “illegally diverted from the accounts” of the AEPC, while urging the CLB to direct a government-appointed board of directors to revive the AEPC company, so as to cure the Council from continuing acts of oppression and mismanagement.
Bharat Tex Special Report 2026 
