Allotment of shares under companies act, 1956

Dear All,

I am having a problem in shares allotment under Comapies act, 1956.

The Problem is that, a private company had received an application for issue of shares from a related party, based on the application made company had issued shares without receiving any proceeds and filed required forms with the ROC. After 10 days of filling forms with ROC, company had received whole proceeds from issue of shares.

Now, special audit team observed and objected that how the company had issued shares without receiving any proceeds from issue of shares. And they are treating it as a criminal activity.

Give me any valuable suggestions that can support the acts of the Company 

Thanks & Regards