Over 2 lakh defunct companies were removed by ‘Registrar of Companies’ post demonetization

New Delhi, December 6: After demonetization, the Registrars of Companies (RoCs) as on 19.12.2017 has removed the names of 2,26,166 companies out of 2.97 lakh companies which were not filing their Financial Statements or Annual Returns for a continuous period of two or more financial years. This was said by Corporate Affairs Minister P.P. Chaudhary in a written reply to a question in Lok Sabha on Friday.

 

He said that prior to demonetization, 16,08,637 number of companies stood registered. “After demonetization, the Registrars of Companies (RoCs) has identified 2.97 lakh companies during 2017-18 which were not filing their Financial Statements or Annual Returns for a continuous period of two or more financial years and, prima facie, were not conducting any business or in operation,” he added.

The Corporate Minister also said, “Out of such identified companies, ROCs has removed the names of 2,26,166 companies as on 19.12.2017 from the register of companies by following the due procedure under Section 248 of the Companies Act, 2013.”

“Further, based on information received from various banks, the Central Government has ordered investigations into the true ownership of 68 such companies u/s 216 read with Section 210(1)(c) of the Companies Act, 2013, which have deposited Rs. 25 crores or more in Bank Accounts and withdrew in an exceptional manner post demonetisation. The investigations are underway,” the Minister said in a written reply.

Minister P.P. Chaudhary also noted that as of now, the Government has identified 3,09,619 directors as disqualified u/s 164(2)(a) of the Companies Act, 2013 pertaining to companies for which Financial Statements or Annual Returns have not been filed for a continuous period of three Financial Years.

Importantly, the government of India has initiated campaign against black money, wilful defaulters and erring directors. There are a number of registered companies that are facing action from authorities after the demonetisation.