In just 5 years, Almost 4 Lakh Companies have been wiped from Official Records!! Union Minister!!

In just 5 years, Almost 4 Lakh Companies have been wiped from Official Records!! Union Minister!!
In just 5 years, Almost 4 Lakh Companies have been wiped from Official Records!! Union Minister!!

In Just 5 years, Almost 4 Lakh Companies have been wiped from Official Records!! Details Here!! Union Minister!! Almost 4 Lakh Companies has been removed from official records by Union Minister. The information is fake or fact by seeing the article you can come to the conclusion. Check details below.

2,26,166 businesses were shut down in total during the 2017–18 fiscal year, 1,12,797 in 2018–19, 43,912 in 2019–20, nil in 2020–21, and 49,921 in 2021–22.

The Ministry of Corporate Affairs has removed 4, 32,796 firms from official records over the last five years. The most businesses (2, 26,116) have been deleted from the Registrar of Companies in the last five years in 2017–18.

Minister of State for Corporate Affairs RaoInderjit Singh responded in writing to a question on Monday,

“Section 248 of the Companies Act, 2013 (the Act) provides for the removal of the name of the company from the Register of Companies, if it is not carrying on any business or operation for a period of 2 immediately preceding financial years and has not made any application within the said period for obtaining the status of a Dormant Company under section 455 of the Act.”

According to Singh, Section 59 of the 2016 Insolvency and Bankruptcy Code, titled

“Voluntary Liquidation for Corporate Persons,” does not grant the authority to make rules. An inactive firm is covered under the Act’s section 455 requirements.

The Minister Stated

There were a total of 451 businesses that became dormant in 2017–18, 362 in 2018–19, 570 in 2019, 81 in 2020–21, and 116 in 2021–22.

The Registrar of Corporations has just declared 1, 12,509 companies to be invalid, according to Singh in a response to a question in Parliament. Out of all the businesses that were disqualified, Delhi had the most—19,464—followed by Maharashtra (16,023 businesses), Uttar Pradesh (12,823), West Bengal (11,044), and Tamil Nadu (11,044). (6,989).

According to Singh,

The government has launched a particular push to identify and deregister sham firms. Corporations without significant assets or active business operations are referred to as shell companies. These businesses are occasionally used for nefarious activities like tax evasion, money laundering, hiding ownership, and benami properties. The terms “shell company” and “fraudulent shell company” are not defined under the Companies Act, nevertheless.

NirmalaSitharaman, the Minister for Corporate Affairs, stated

In a recent RajyaSabhareply that the government has launched specific drives to identify and strike down non-operational firms in accordance with Section 248 of the Companies Act.

Additionally, she stated that under Section 164(2) (a) of the Companies Act, the corporate affairs ministry is given the authority to remove directors from companies that have not submitted an annual report or financial statements for three consecutive financial years. For five years, such people may not be reappointed as directors of the company in question or in any other firms.

Due to COVID there is no profit in the companies and business so they were force to close it and also some were forced to close by the government., In this situation the Union Minister has said that Over 4 Lakh Companies Have Been Removed From Official Record in 5 Years. Follow our site for daily updates.

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