ROC in Special Drive Struck off Lakhs of Companied till FY 2020-21; Check How Many Companies Struck off by ROC

Registrar of Companies has STRUCK OFF 3,82,875 companies in the Special drive Under Section 248 (1) of the Companies Act until the fiscal year 2020-21. Rao Inderjit Singh, Union Minister of State for Corporate Affairs, in a written reply to a question in Rajya Sabha today stated that.

The Minister went on to say that there is no definition of the term “Shell Company” in the Companies Act of 2013. It usually refers to a company that has no active business operations or significant assets and is used for illegal purposes such as tax evasion, money laundering, obscuring ownership, benami properties, and so on. The Special Task Force established by the government to investigate the issue of “Shell Companies” has recommended, among other things, the use of certain red flag indicators as alerts for the identification of suspected Shell Companies.

Union Minister stated that the government has launched Special Drives to identify and strike off companies in accordance with Section 248 (1) of the Companies Act.

Union Minister stated that the Registrar of Companies (RoC) struck off those companies from the Register of Companies after following the due process of law when RoC has reasonable cause to believe that those companies have not carried on any business or operation for a period of two, immediately preceding fiscal years. The RoC also confirms that such company has not applied for dormant company status under Section 455 of the Act during the applicable period.