According to official data, more than 3.96 lakh companies were removed from official records in the last five financial years after following due process under the Companies Act.
The Ministry of Corporate Affairs, which enforces the Companies Act, 2013, removed 12,892 companies from official records in the last financial year, as against 2,933 in 2019-20.
Data provided to the Rajya Sabha by Minister of State for Corporate Affairs Rao Inderjit Singh in a written reply on Tuesday shows that a total of 3,96,585 companies were removed from the register of companies in the last five financial years.
A total of 7,943 companies were removed from the register in 2016-17, as compared to 2,34,371 in 2017-18 and 1,38,446 in 2018-19.
When asked whether several companies were shut down due to lack of compliance, the minister replied in the affirmative.
As per the provisions of section 248(1) of the Companies Act, the name of the company can be removed from the register after following due process of law subject to certain conditions.
Removal is subject to the condition that the Registrar has reasonable cause to believe that the companies which have not been carrying on any business or operations for a period of two financial years and these firms have not made any application within such period for obtaining the status has done. of a dormant company under section 455.
In a separate written reply, Mr Singh said the CSR (Corporate Social Responsibility) framework is disclosure-based and CSR-mandated companies are required to file details of such activities annually in the MCA 21 Registry.
“Based on the filings made in the MCA21 Registry up to 30.09.2021, both public and private sector companies have spent an amount of ₹8,828.11 crore in the financial year 2020-21, out of which ₹2,559.30 crore amounted to ‘healthcare’. ‘ has been spent on. related activities’.
“However, the ministry does not maintain separately the details regarding CSR expenditure incurred by companies under CSR for COVID-19,” he said.
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