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