MCA to remove 400 Chinese Companies for Fraud and Harassment

The Ministry of Corporate Affairs (MCA) plans to strike off around 400 Chinese Companies dealing in online loans and jobs across 17 Indian states. This includes Delhi Mumbai and Bengaluru. This action follows investigations into incorporation-related and financial frauds.

Investigation Findings

The MCA‘s investigation covered nearly 600 Chinese Companies. Of these 300 to 400 are set to be removed for engaging in predatory lending practices. They are involved in fraud and violating financial regulations. These companies often harass borrowers, charge high interest rates and use aggressive tactics.

Financial Irregularities

Some companies have Indian directors but use Chinese bank accounts with no recorded transactions. Others are not found at registered offices. They have shifted investments into unrelated businesses. This indicates financial fraud.

Legal Procedure

According to Section 248 of the Companies Act, the process to strike off a company takes three months. MCA sends two notices within this period and if there is no response, the company is removed from the register.

Further Actions

The MCA has also ordered investigations into another 30-40 Chinese Companies including mobile screen and battery manufacturers. This move is part of the Indian government’s efforts to ensure transparency and accountability. It particularly targets digital lending apps linked to Chinese firms. By removing these fraudulent companies, MCA aims to protect Indian consumers from predatory practices and financial misconduct.