Have Over 1.85 Lakh Companies Been Struck Off in the Last 5 Years?
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Synopsis
The government has taken significant measures by striking off over 185,000 companies that were inactive over the last five years. This move underscores the government's commitment to maintaining corporate accountability and transparency. Discover the implications of these actions and their role in curbing financial misconduct.
Key Takeaways
- 185,350 companies struck off for inactivity over 5 years.
- Current fiscal year sees 8,648 companies removed.
- Action taken under section 248 of the Companies Act.
- Measures ensure corporate accountability and transparency.
- 87 illegal loan applications blocked by the government.
New Delhi, Dec 1 (NationPress) The government has recognized and removed 185,350 companies that were not engaged in any business or operations over the past five years (up to July 16, 2025), as reported to Parliament on Monday.
In the ongoing fiscal year (FY26), 8,648 companies have been removed in accordance with section 248 of the Companies Act, 2013, as stated by Minister of State for Corporate Affairs Harsh Malhotra in the Lok Sabha.
“This Ministry periodically conducts a Strike-Off drive under section 248(1) to eliminate companies that have not conducted any business or operations for two consecutive financial years and have not applied for dormant status under section 455 of the Act during that period…” he remarked.
Moreover, according to section 248(2) of the Companies Act, 2013, companies that voluntarily request the removal of their name from the Registrar of Companies after settling all their liabilities are struck off following the proper procedure.
The Companies Act, 2013, along with its regulations, provides sufficient measures to ensure accountability and transparency in corporate governance. It mandates accountability from key managerial personnel, the Board of Directors, and shareholders.
When asked whether the government intends to enhance inter-agency coordination with the Enforcement Directorate (ED) and the Income Tax Department for overseeing companies involved in money laundering or tax evasion, the minister affirmed: “Yes, any instances reported are shared with other government agencies for monitoring such activities.”
The government also disclosed that 87 illegal loan lending applications have been blocked after following due procedures.
“To date, after adhering to the due process, MeitY has blocked a cumulative total of 87 illegal loan lending applications under section 69A of the Information Technology Act 2000,” added Malhotra.
Regulatory actions for inquiry, inspection of bookkeeping, and investigations under the Companies Act, 2013 are conducted regularly against companies, including those engaged in online lending through loan applications, he concluded.
Point of View
I believe the government's decisive action to remove inactive companies reflects a firm stance on corporate governance. This move not only enhances transparency but also protects investors and the integrity of the financial system. It is crucial for maintaining trust in the economic environment.
NationPress
02/12/2025
Frequently Asked Questions
What is the reason behind striking off these companies?
The companies were found not to be carrying out any business or operations for a period of two consecutive financial years.
What section of the Companies Act allows for this action?
This action is carried out under section 248 of the Companies Act, 2013.
How many companies were struck off in the current fiscal year?
A total of 8,648 companies have been struck off in the current fiscal year (FY26).
What measures are in place to ensure accountability in corporate governance?
The Companies Act, 2013, includes provisions for accountability from key managerial personnel, the Board of Directors, and shareholders.
What action has been taken against illegal loan lending applications?
The government has blocked 87 illegal loan lending applications following due process.
