36,211 firms shut in Maharashtra in 5 years: Congress, Shiv Sena-UBT slam MahaYuti

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36,211 firms shut in Maharashtra in 5 years: Congress, Shiv Sena-UBT slam MahaYuti

Synopsis

Parliamentary data has handed Maharashtra's opposition a blunt weapon: 36,211 private companies shut in five years, with 12,181 in Mumbai alone. Congress and Shiv Sena (UBT) are using the Lok Sabha figures to argue that MahaYuti's investment narrative is built on sand — and a land-lease controversy in Ahilyanagar is adding a corruption dimension to what is already a damaging industrial story.

Key Takeaways

36,211 private companies shut down in Maharashtra over five financial years , per data tabled in the Lok Sabha .
12,181 of the closures were in Mumbai , the country's financial capital.
The highest closure rate was recorded along the Mumbai–Pune–Nashik industrial corridor.
Maharashtra Congress President Harshwardhan Sapkal alleged the state leased 1,500 acres in Ahilyanagar to a private firm without public tenders on a 50-year lease .
Shiv Sena (UBT) leader Aaditya Thackeray cited infrastructure failures, corruption, and political instability as drivers of industrial exodus.
Chief Minister Devendra Fadnavis has disputed the framing, calling closed entities 'defunct' companies; the government has not formally rebutted the specific land-transfer allegations.

Congress and Shiv Sena (UBT) on Friday, 14 August launched coordinated attacks on the BJP-led MahaYuti government in Maharashtra, citing parliamentary data showing 36,211 private companies shut down in the state over the last five financial years — a figure the opposition attributed directly to what it called the ruling alliance's flawed and business-hostile industrial policies.

What the Parliamentary Data Shows

Maharashtra Congress President Harshwardhan Sapkal pointed to a written response tabled in the Lok Sabha by Minister of State for Corporate Affairs Harsh Malhotra, which disclosed the closure figures. According to that data, 12,181 of the 36,211 shuttered entities were based in Mumbai alone — the country's financial capital. The highest rate of closures, the minister's response indicated, was recorded along the Mumbai–Pune–Nashik industrial corridor.

Sapkal described the government's industrial policies as 'fraudulent and ineffective', alleging that 'rampant corruption, commission culture, and the high-handedness of ruling party associates' have driven industries to either shut down or relocate to other states.

Opposition Rejects Fadnavis's 'Defunct Companies' Framing

Chief Minister Devendra Fadnavis has previously claimed that Maharashtra continues to lead the country in new company registrations and remains a preferred investment destination. Sapkal directly challenged that framing, arguing that the government's own parliamentary submission contradicts those claims.

'Playing with words cannot hide the reality of industrial shutdown. Given the surging youth unemployment in the state, the question remains — where are the promised investments and jobs?' Sapkal said, rebutting Fadnavis's characterisation of closed firms as merely 'defunct' entities.

Land Allocation Controversy in Ahilyanagar

Sapkal also levelled a separate allegation of corruption in land transfers. He claimed the state government leased 1,500 acres of agricultural corporation land in Shrirampur taluka of Ahilyanagar district to Nibe Group — a private firm reportedly associated with a state minister — for non-agricultural use on a 50-year lease, without inviting public tenders.

'Handing over government land to private businessmen without competitive bidding is blatant corruption,' Sapkal asserted. He further alleged that similar land transfers had occurred in Gadchiroli, and called for the Ahilyanagar decision to be revoked immediately. The state government has not publicly responded to these specific land-transfer allegations.

Aaditya Thackeray Cites Infrastructure and Governance Failures

Shiv Sena (UBT) leader Aaditya Thackeray echoed the concern, saying the closure figure 'should get all of us thinking.' He pointed to a broader set of grievances that industrialists privately raise: pending ease-of-compliance reforms, infrastructure deficits including potholes and delayed road works, and what he described as 'massive corruption' and inter-departmental rivalry within the administration.

Thackeray specifically named established industrial clusters — Chakan, Hinjewadi, Pimpri-Chinchwad, Nashik, and Maharashtra Industrial Development Corporation (MIDC) estates — as zones where civic and infrastructure problems are hampering operations. 'Political instability and local dirty politics in the past five years' were also cited as compounding factors, he said.

What This Means for Maharashtra's Industrial Outlook

The opposition's broadside comes at a politically charged moment — ahead of key state-level political cycles and amid ongoing debate about whether Maharashtra is losing its edge as India's premier industrial hub to states like Gujarat, Tamil Nadu, and Telangana. The MahaYuti government has not yet issued a formal rebuttal to the combined Congress–Shiv Sena (UBT) statement. Whether the parliamentary data translates into sustained political pressure will depend on how the ruling alliance responds to the specifics of the Lok Sabha figures in the days ahead.

Point of View

But it does not address the underlying question of why Maharashtra's marquee industrial corridor — Mumbai–Pune–Nashik — recorded the highest closures. The land-transfer allegation in Ahilyanagar, if substantiated, adds a corruption layer that goes beyond industrial policy debate. Maharashtra has long coasted on its legacy as India's commercial capital; the data suggests that legacy advantage is being contested by rival states with fewer administrative frictions and more competitive land and compliance regimes.
NationPress
14 Aug 2026

Frequently Asked Questions

How many companies shut down in Maharashtra in the last five years?
According to data submitted in the Lok Sabha by Minister of State for Corporate Affairs Harsh Malhotra, 36,211 private companies closed down in Maharashtra over the last five financial years. Of these, 12,181 were based in Mumbai alone.
Why are Congress and Shiv Sena (UBT) blaming the MahaYuti government?
Both parties argue that the BJP-led MahaYuti government's industrial policies, corruption, and administrative failures have made Maharashtra hostile to business, driving companies to shut down or relocate to other states. They cite the parliamentary data as proof that the government's investment and job-creation claims are false.
What is the Ahilyanagar land controversy about?
Congress President Harshwardhan Sapkal alleged that the state government leased 1,500 acres of agricultural corporation land in Shrirampur taluka, Ahilyanagar district, to Nibe Group — reportedly linked to a state minister — on a 50-year lease for non-agricultural use, without public tenders. He called it 'blatant corruption' and demanded the decision be revoked.
Which industrial areas have been most affected by company closures?
The highest closure rates were recorded along the Mumbai–Pune–Nashik industrial belt, according to the minister's parliamentary response. Shiv Sena (UBT)'s Aaditya Thackeray also flagged specific clusters — Chakan, Hinjewadi, Pimpri-Chinchwad, Nashik, and MIDC estates — as areas where infrastructure and governance failures are hurting industry.
How has the Maharashtra government responded to these allegations?
Chief Minister Devendra Fadnavis has maintained that Maharashtra leads the country in new company registrations and remains a top investment destination, characterising the closed entities as 'defunct' companies. The state government had not issued a formal rebuttal to the combined opposition statement or the Ahilyanagar land allegations as of the time of this report.
Nation Press
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