More than one lakh companies deregistered this fiscal year: Govt

The government on Friday said that it has struck off names of more than 1 lakh companies from the official records in the current fiscal year for not carrying business activities for a long time.

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In a drive to fix the illicit fund flows, the Corporate Affairs Ministry has been active against the entities that are suspected to be shell companies.

The Companies Act, 2013, says a company can be deregistered if it has not been carrying out any business for two continuous years and has also not applied for obtaining dormant status. P P Chaudhary, Minister of State for Corporate Affairs, informed the Lok Sabha that 2.26 lakh companies were struck off from the Register of Companies as on December 31, 2017.

Chaudhary, in a written reply, said in “During financial year 2018-19, a total of 2, 25,910 companies have been identified for action under Section 248 of the Act and after following due process of law, names of 1, 00,150 companies have been struck off from the Register of Companies. This is a continuous process.”  According to him, a total of 40,712 cases have been registered with the NCLT and 26,290 cases have been disposed by the tribunal till November 30, 2018.

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More than one lakh companies deregistered this fiscal year: Govt
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More than one lakh companies deregistered this fiscal year: Govt
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The government on Friday said that it has struck off names of more than 1 lakh companies from the official records in the current fiscal year for not carrying business activities for a long time.
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The Policy Times
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