As many as 12,889 corporations had been struck off from official data within the monetary 12 months ended March 2021 and 87 corporations dissolved throughout the identical interval, in response to official knowledge.
As per the info supplied by the company affairs ministry to Rajya Sabha on Tuesday, a complete of 2,38,223 corporations had been struck off and 651 dissolved in the course of the interval from 2018 to June 2021 beneath Section 248 of the Companies Act, 2013.
Under the Section 248, an organization will be struck off the official data topic to sure circumstances. These embody cases the place the Registrar of Companies has an affordable trigger to consider that corporations that aren’t carrying on any enterprise or operation for 2 instantly previous monetary years and has not made any software inside such interval for acquiring dormant firm standing can be struck off after following the due course of of regulation.
Further, corporations are dissolved by way of amalgamation or in any other case with the approval of courts.
In 2020-21, a complete of 12,889 corporations had been struck off and 87 corporations dissolved, as per the info supplied together with a written reply by Minister of State for Corporate Affairs Rao Inderjit Singh.
“Thus, it can’t be stated that 13,000 massive corporations and lakhs of small and tiny corporations have shut down throughout 2020-2021,” Mr. Singh stated.
He was responding to a query on whether or not it’s a proven fact that over 13,000 registered massive corporations and over lakhs of small and tiny industries have shut down operations in 2020-21, together with 1,200 corporations based mostly in North India.
The minister additionally famous that massive corporations, small and tiny industries usually are not outlined beneath the Companies Act, 2013, and that the time period ‘closed firm’ can be not outlined beneath the Act.
In North India, 5,034 corporations had been struck off and 44 dissolved over the last monetary 12 months.
North India refers to NCT of Delhi, Haryana, Uttar Pradesh, Uttarakhand, Himachal Pradesh, Punjab, UT of Chandigarh, UT of Ladakh and UT of Jammu and Kashmir.
In Delhi and Haryana, 2,396 corporations had been struck off and 42 dissolved in 2020-21 whereas 12,653 corporations had been struck off and 53 dissolved in 2019-20, the info confirmed.
This was in response to a question on whether or not it’s a proven fact that in Haryana itself, about 3,000 and in Delhi, over 2,450 registered massive corporations have shut down their enterprise within the final two years.