Centre Takes A ‘Firm’ Stand Against Money-Laundering: De-Registers More Than 100,000 Companies This Fiscal

Centre Takes A ‘Firm’ Stand Against Money-Laundering: De-Registers More Than 100,000 Companies This FiscalRepresentative Image. (Photo by Chris Ratcliffe/Getty Images)

On Friday (December 28), Government of India said that more than one lakh companies, owing to absence in business activities, have been de-registered from the official records this fiscal year. In an attempt to cut down on the illicit funds that come through shell companies, Ministry of Corporate Affairs has made the move.

If a company does not perform any business for two years in a row and fails to obtain a dormant status, it can be de-registered under the provisions of the Companies Act (2013).

Economic Times quoted Minister of State for Corporate Affairs, P P Chaudhary, as saying, “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 100,150 companies have been struck off the Register of Companies. This is a continuous process.”

Regarding non-performing assets, he added that the National Company Law Tribunal does not maintain data.

He said, “However, as per the information given by Insolvency and Bankruptcy Board of India (IBBI), orders of 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,” Economic Times reported.