Deregistration row: Over 22,000 firms struck off the list from Delhi

Earlier, the govt cancelled the registration of around 100,000 companies across the country

More than half of the 100,000 corporate entities found dormant or defunct and struck off the list by registrars of companies (RoCs) in the recent past came from eight states and two Union Territories. 

As many as 54,233 of these entities were based in Delhi, Tamil Nadu, West Bengal, Gujarat, Uttar Pradesh, Punjab, Uttarakhand, Jammu & Kashmir, Meghalaya and Puducherry.

Delhi and its adjoining areas had the largest number of dormant companies, with 22,864 being struck off the rolls of the RoC here. Followed by Tamil Nadu, which deregistered 12,134 companies. West Bengal recorded 8,000-plus cases; Gujarat was in fourth position with 3,625. The Chandigarh RoC has struck off 2,216 companies. These are followed by UP, Puducherry, Uttarakhand, Meghalaya and J&K.

Sources said some of these companies were only on paper, to be used as shell entities.

In a recent speech, the prime minister had stated that action was planned against shell companies to prevent their use in laundering of money. As many as 300,000 more firms are reportedly now in the ministry of corporate affairs’ radar. According to the latter, the total of registered companies are a little more than 1.6 million, of which 1.3 mn have been active.

As recently reported, the RoC in Odisha had also sent notices to 81 Limited Liability Partnerships (LLPs), for not conducting any activity over two years. Another 12 LLPs have voluntarily asked for deletion of their names from the RoC roster. Most of these came on the the radar during demonetisation.