More Than 5.57 Lakh Firms Struck Off Due To Non-Compliance: Centre
NDTV
Minister of State for Corporate Affairs Rao Inderjit Singh said that the term 'shell company' is not defined under the Companies Act.
More than 5.57 lakh companies were struck off the records in the last five years due to non-compliance with various provisions of the Companies Act, 2013, according to the government.
Minister of State for Corporate Affairs Rao Inderjit Singh on Tuesday said that 5,57,055 companies were struck off under Section 248 of the Companies Act, 2013 read with the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 in the country in the last five years.
They were struck off due to non-compliance with provisions of the Act, he said in a written reply to Rajya Sabha.
He also said that the term 'shell company' is not defined under the Act. It normally refers to a company without active business operation or significant assets, which in some cases are used for illegal purpose such as tax evasion, money laundering, obscuring ownership and benami properties, he added.
