In an official disclaimer issued on Wednesday evening, chief secretary L Tochhong said P C Lallawmsanga, principal secretary of the industries department, reportedly launched the firm in his personal capacity.
Tochhong said the Mizoram Direct Marketing Ltd has been registered under the Companies Act, 1956, on March 11, 2013.
Government officers cannot float a business firm to conduct commercial activities by branding it as one owned by the government of Mizoram unless it gets the nod of the cabinet, the disclaimer said. It added that the memorandum of association and articles of association have neither been vetted by the law department nor concurred by the finance department of the state government before approaching the Registrar of Companies.
It said the directors (who are all government officials) have not obtained prior permission as required under the CCS (Conduct) Rules to float a commercial concern.
P C Lallawmsanga has not been authorized to sign the memorandum of understanding between the government of Mizoram and RMP Infotec Private Ltd, Chennai, on December 10, 20l2 and the licensee agreement between the firm and Mizo Lifestyle Marketing Private Ltd on March 13, 2013, the disclaimer added.
Tochhong told reporters that the government is contemplating to take action against the officials involved in the establishment of the company, especially P C Lallawmsanga, a 1984 batch IPS officer of the Tamil Nadu cadre.
While launching the venture at a function on July 18 this year, Lallawmsanga was quoted as claiming that the firm had the blessings of chief minister Lal Thanhawla. He had said the government has decided to get into multi-level marketing and direct marketing of consumer goods to eradicate unemployment as the state's topography did not allow setting up of industries.
An official, on condition of anonymity, said the chief secretary instructed Lallawmsanga not to attend the launch function but the latter did so saying he had the permission of the chief minister. Other directors of the venture were Teresy Vanlalhruaii and Lalbiakthanga Chhakchhuak.