Government To Terminate 1.20 Lakh Registration And Companies On Black Money – ZMR Blog
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Government To Terminate 1.20 Lakh Registration And Companies On Black Money

Government To Terminate 1.20 Lakh Registration And Companies On Black Money

The government announced the removal of 1.20 Lakh registrations and the names of the companies from the official record. Under the fight against black money, the government is canceling the registration of companies not following various rules. The government has already canceled the registration of about 2.26 Lakh companies before this. At the same time, 3.09 Lakh directors connected with these entities have been barred.

The government had held a review meeting last week, in which the actions against the companies, which first canceled the registration, were reviewed. In the same meeting, the decision to cancel 1.20 Lakh companies and registration of companies were taken. Presiding over the meeting, Corporate Affairs Minister P. P. Chaudhary directed the officers to speed up the process of action against the companies, which were withdrawn from the records.

About 1.20 Lakh companies will also be removed from the record for not complying with the various rules. The Ministry gave this information in a statement. Registration of 2.26 Lakh companies has not been completed till December 2017. These steps have been taken to prevent the flow of illegal money.

It has been stated in the statement that 1,157 cases of reinstatement of companies registered with National Companies Law Tribunal (NCLT) have been sent. NCLT has ordered the idea of restoration of 180 of these companies. The restoration of 180 companies, out of these 128 companies has been done by the Registrar. Around 992 cases related to the disqualification of the directors are in various High Courts.

The Ministry said that out of these 190 cases have been settled. Apart from this, the Minister has asked to look into the issues of forgiveness plans on priority, so that the benefit of the eligible companies can be ensured. The Ministry said that after the cancellation of registration and declaration of the candidates disqualified, there is a trend of increase in compliance. On MCA 21, more and more companies are filing annual returns and accounts. Under the Companies Act, all types of particulars are filed through MCA 21 portal.

The ministers are stressing onto notifying the company directors and secretaries of all entities to guarantee that fillings are made on given time, which would ultimately result in prevention of unnecessary prosecution and litigation.

This move by the government will not only help to demolish the fraud businesses that are reaping the benefits without following the standard regulations.

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