Home / Companies / News /  Govt strikes off over 1.28 lakh companies from records for non-compliance

The Central government has struck off 1,27,952 companies from the records for failing to submit their financial statements for two continuous financial years.

In a formal statement by Union minister Rao Inderjit Singh in Lok Sabha amid the Budget Session said, "A number of 1,27,952 companies have been struck off in last 3 years".

The minister said that the government undertook a special drive for identification and striking off companies under section 248(1) of the Companies Act, 2013.. The act reads that Companies (Removal of Names of Companies from the Register of Companies) Rules that had not filed their financial statements and/or annual returns for a continuous period of two immediately preceding financial years.

Singh responded to a query on whether the government has implemented any safeguard measures for firms that unknowingly conduct business with shell companies.

He said that the term "Shell company' is not defined under the Companies Act, 2013.

However, the Centre amended a schedule of the Act in March 2021 to put in place safeguard measures with respect to transactions with such struck-off companies. With the amendment, companies having a relationship with struck-off companies will have to make certain disclosures.

To a question related to Work From Home, Singh said the Ministry of Electronics & Information Technology (MeitY) had constituted an Inter-Ministerial Working Group to address the challenges faced by the IT/ITES industry in implementing Work From Home for their employees.

The Department of Telecommunications (DoT), Ministry of Communications has issued new Other Service Providers (OSPs) guidelines to reduce the compliance burden for BPO and other IT-enabled service providers. The guidelines have also enabled companies to adopt hybrid working models by enabling 'Work from Anywhere' in the country.

Further, when asked whether the government has notified the rules to permit companies, especially startups to allow them to directly list their securities on foreign stock exchanges, the minister replied in the negative.

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Recommended For You
Get alerts on WhatsApp
Set Preferences My ReadsWatchlistFeedbackRedeem a Gift CardLogout