Fadnavis defends Maharashtra: 76% of 36,211 company closures were defunct firms, not industrial flight
Synopsis
Maharashtra CM Devendra Fadnavis has pushed back hard against the 'industrial exodus' narrative — breaking down 36,211 company closures to show 76% were defunct entities that never operated. With the state still leading India in active companies and new incorporations, the real story may be less about flight and more about a long-overdue regulatory clean-up — though the Chakan infrastructure crisis shows the ground-level pressures are very real.
Key Takeaways
Devendra Fadnavis on 14 August rejected claims that 36,211 company closures in Maharashtra over five years signal an industrial exodus.
76% of closures were defunct firms — non-operational or never commenced business; 12% were amalgamations, 2% formal liquidations, and 10% other regulatory strikes.
Maharashtra leads India with 3,96,211 active companies and 41,525 new incorporations in 2025–26 (Rank 1 nationally).
Active companies nationwide grew from 6.78 lakh (2015–16) to 21.17 lakh (2025–26) — a threefold increase.
Around 20 industrial units employing ~2,000 workers in Chakan, Pune are weighing relocation over traffic, power, and road bottlenecks.
Post-monsoon infrastructure fixes in Chakan have been prioritised; the zone is proposed to be upgraded to a dedicated Industrial Township .
Maharashtra Chief Minister Devendra Fadnavis on Friday, 14 August firmly rejected the narrative of an industrial exodus from the state, clarifying that 76% of the 36,211 registered companies that closed over the past five years were non-operational or defunct entities removed through routine regulatory compliance exercises — not active businesses that shut down or relocated.
What the Data Actually Shows
The controversy stems from a parliamentary response furnished by Union Minister of State for Corporate Affairs Harsh Malhotra to Lok Sabha MP Rajabhau Waje, disclosing that 36,211 private companies in Maharashtra were deregistered over the last five years. Opposition leaders and sections of the media characterised this as evidence of a mass corporate shutdown.
Fadnavis countered this reading with a breakdown of the closures: 76% were defunct companies — entities that were either non-operational or never commenced business; 12% were amalgamations merged into larger corporate structures; 2% underwent formal liquidation; and the remaining 10% were struck off for other regulatory compliance reasons.
Maharashtra's Active Company Lead
Reaffirming the state's market leadership, Fadnavis cited official Ministry of Corporate Affairs (MCA) data showing Maharashtra holds the highest number of active companies in the country — 3,96,211 — and continues to lead in fresh incorporations, recording 41,525 new company registrations in 2025–26 alone, ranking first nationally.
The next states in new formations were Uttar Pradesh (27,494), Delhi (20,272), Karnataka (17,857), Telangana (17,300), Tamil Nadu (17,024), Gujarat (14,666), and West Bengal (10,598).
Fadnavis also contextualised the closures against national trends, noting that active corporate entities across India have grown more than threefold — from 6.78 lakh in 2015–16 to over 21.17 lakh in 2025–26. He added that the MCA periodically conducts special deregistration drives — such as the 2019–20 exercise that struck off 6 lakh defunct firms — and that annual deregistrations nationwide average 20,000 to 22,000 entities.
Chakan Industrial Belt: Ground-Level Concerns
Separately, Fadnavis addressed infrastructure concerns flagged by NCP (SP) chief Sharad Pawar regarding the Chakan industrial belt in Pune district, where approximately 20 units employing around 2,000 workers were reportedly weighing relocation due to severe traffic congestion, power supply gaps, and road deterioration.
Following a high-level review on 12 August involving the Maharashtra Industrial Development Corporation (MIDC), Pune Metropolitan Region Development Authority (PMRDA), Public Works Department (PWD), National Highway Authority of India (NHAI), Zilla Parishad, and district authorities, State Industries Minister Uday Samant has been tasked with directly supervising targeted infrastructure fixes. Pothole repair, road widening, and traffic decongestion works in Chakan are to be prioritised post-monsoon.
The state government has also proposed converting key industrial zones, including Chakan, into dedicated Industrial Townships for unified civic and operational management, and has announced plans for Chakan Phase-6 development to meet surging demand — backed by over 500 new industrial investments secured over the last three years.
What the Deputy CM Said
Deputy Chief Minister and Pune district guardian minister Sunetra Pawar said that problems in Chakan MIDC would be resolved on priority. 'Problems in Chakan MIDC are to be resolved on a priority basis. The issues related to roads, traffic, and other infrastructure facilities in Chakan MIDC will be addressed on a priority basis,' she said, adding that a meeting with entrepreneurs, senior MIDC officials, and district administration would be convened shortly.
She confirmed that instructions had been issued to MIDC Chief Executive Officer Deependrasingh Kushwaha, Pune District Collector Jitendra Dudi, PMRDA Commissioner Abhijeet Chaudhary, Pune Zilla Parishad CEO Gajanan Patil, Pimpri-Chinchwad Police Commissioner Vinay Kumar Chaube, Khed Sub-Divisional Officer Anil Daunde, and Chakan Municipal Council Chief Officer Ankush Jadhav.
Sharad Pawar's Warning
Sharad Pawar had urged the state to treat infrastructure deficits in Chakan and Talegaon on a 'war footing,' cautioning that corporate displacement would damage Maharashtra's historical standing as India's manufacturing powerhouse. 'Maharashtra has always been an industry-friendly state. Industries relocating or shutting down due to infrastructure failure is not a matter of pride,' Pawar said in a social media post, invoking the legacy of the late Yashwantrao Chavan. He also demanded a single-window grievance mechanism and high-level summits between entrepreneurs and state agencies.
With infrastructure upgrades promised and political pressure mounting on both sides, the state government's ability to deliver on its Chakan commitments before the next monsoon will be closely watched by industry stakeholders.
Point of View
211 figure was always a blunt instrument — MCA deregistration data conflates regulatory housekeeping with genuine commercial exits, and Fadnavis is right to separate the two. But the political rebuttal risks obscuring a real problem: the Chakan situation, where 20 units employing 2,000 workers are actively weighing relocation over infrastructure failure, is precisely the kind of ground-level friction that headline metrics miss. Maharashtra's lead in active companies and new incorporations is genuine, but incumbency advantage erodes fast when industrial zones lack basic road and power reliability. The test is not the data war — it is whether the post-monsoon infrastructure commitments in Chakan are actually delivered.
NationPress
14 Aug 2026
Frequently Asked Questions
Why did 36,211 companies close in Maharashtra over five years?
According to Chief Minister Devendra Fadnavis, 76% of the 36,211 closures were defunct companies — entities that were non-operational or had never commenced business — removed through routine MCA regulatory compliance exercises. The remaining closures comprised amalgamations (12%), formal liquidations (2%), and other regulatory strikes (10%).
Does the closure of 36,211 companies mean businesses are leaving Maharashtra?
Fadnavis says no. He argues the figures reflect periodic MCA clean-up drives rather than active businesses shutting down or relocating. Maharashtra still holds the highest number of active companies in India at 3,96,211 and leads the country in new company formations with 41,525 registrations in 2025–26.
What is the Chakan industrial belt issue and why does it matter?
Around 20 industrial units in Chakan, Pune — employing approximately 2,000 workers — are reportedly considering relocation due to severe traffic congestion, poor roads, and power supply gaps. NCP (SP) chief Sharad Pawar flagged the issue, calling for a 'war footing' response. The state has since announced post-monsoon infrastructure fixes and plans to upgrade Chakan into a dedicated Industrial Township.
What action has the Maharashtra government announced for Chakan MIDC?
Following a multi-agency review on 12 August, State Industries Minister Uday Samant has been tasked with supervising infrastructure fixes. Pothole repair, road widening, and traffic decongestion are to be executed post-monsoon on priority. Chakan Phase-6 expansion is also planned, backed by over 500 new industrial investments secured in the last three years.
How has India's overall corporate landscape changed since 2015?
Active company registrations across India have grown more than threefold — from 6.78 lakh in 2015–16 to over 21.17 lakh in 2025–26. Annual deregistrations nationwide average 20,000 to 22,000 entities, and the MCA has periodically conducted bulk clean-up drives, including a 2019–20 exercise that struck off 6 lakh defunct firms.
