More than 1 lakh companies have been struck off the official records in the current fiscal for not carrying business activities for a long time – Government
On Friday in New Delhi- the government said that “names of more than 1 lakh companies have been struck off the official records in the current fiscal for not carrying business activities for a long time.”
As part of clamping down on illicit fund flows, the corporate affairs ministry has been taking action against entities that are suspected to be shell companies.
Under the Companies Act, 2013, 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.
Minister of State for Corporate Affairs P P Chaudhary informed the Lok Sabha that 2.26 lakh companies were struck off from the Register of Companies as on December 31, 2017.
In return, he replied”During the 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”.
In a separate written reply, the minister said that the National Company Law Tribunal (NCLT) does not maintain data related to non-performing assets.
The minister -“However, as per the information was given by Insolvency and Bankruptcy Board of India (IBBI), orders of a resolution against 65 corporate debtors have been issued by the NCLT as on October 31, 2018 with a realisable amount of Rs 60,636 crore by the creditors,”