The Registrar of Companies (RoC) is reportedly looking into the books of GoMechanic, a troubled after-sales service startup, amid allegations of financial irregularities.
In addition, according to sources cited in an ET report, Section 264(4) of the Companies Act empowers the RoC to conduct an inquiry into any company if the Ministry of Corporate Affairs directs it to do so. The RoC development comes just a few days after the National Company Law Tribunal (NCLT) issued a notice to GoMechanic following an insolvency petition filed by an operational creditor, DigiRovers. Another official cited by the publication stated that the case was appropriate for investors to file a class-action lawsuit against GoMechanic. Sequoia has ordered a forensic audit of GoMechanic’s books, despite no indication that the investor group will do so.