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Business News/ News / India/  7,700 firms voluntarily closed business since setting up C-PACE, govt tells Parliament
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7,700 firms voluntarily closed business since setting up C-PACE, govt tells Parliament

The Corporate Affairs Ministry operationalised the C-PACE in May this year to expedite the applications filed for voluntary exit under the provisions of the Companies Act, 2013.

A file photo of Minister of State for Corporate Affairs Rao Inderjit Singh. Photo: HTPremium
A file photo of Minister of State for Corporate Affairs Rao Inderjit Singh. Photo: HT

Since the setting up of the Centre for Processing Accelerated Corporate Exit (C-PACE) in May 2023, more than 7,700 companies have voluntarily closed down their business in India, said Minister of State for Corporate Affairs Rao Inderjit Singh on December 11, adding that the time taken for voluntary exit has come down to around 110 days.

Singh said the applications for voluntary closure under C-PACE are processed in a centralised manner for an efficient and uniform outcome.

"Since the setting up of C-PACE, 7,721 companies have been struck off till 05.12.2023, under section 248(2) of the Act... the time taken under C-PACE for voluntary exit has reduced to around 110 days during the current year," he said in a written reply to the Lok Sabha.

ALSO READ: 53 Chinese foreign firms established business in India, govt tells Parliament

The Corporate Affairs Ministry operationalised the C-PACE on May 1, 2023, to facilitate and expedite the applications filed for voluntary exit under the provisions of Section 248 (2) of the Companies Act, 2013.

Under the Act, certain classes of profitable companies are required to shell out at least 2% of their annual average net profit towards Corporate Social Responsibility (CSR) activities.

Singh said whenever a violation of CSR provisions is reported, action against such non-compliant companies is initiated as per provisions of the Companies Act after due examination of records and following due process of law.

"So far, sanction for prosecution has been accorded in 366 cases. Of these, 175 applications for compounding have been made and 131 cases have been compounded.

"Now, the non-compliance of CSR provisions has been converted as a civil wrong w.e.f. 22nd January 2021," he added.

53 Chinese foreign firms:

Earlier in the parliament, Singh said that at least 53 Chinese foreign companies established a place of business in India, and these firms maintained no specific data about their activities related to providing loans through apps.

With agency inputs.

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Published: 11 Dec 2023, 05:22 PM IST
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