Govt breaks limited-liability partnership with 81 firms in Odisha

Firms had not been operating for two financial years

After striking off 100,000 companies from its roster, the office of the registrar of companies (RoC) in Odisha has sent notices of de-registration to 81 limited-liability partnerships (LLPs).

According to the Union corporate affairs ministry, these companies have not been operating for two continuous financial years. Most of these have been registered for more than six years. They do not even have any official website. None of these have filed any financial statement with the ministry since they got registered in Odisha.

These companies have got a month to challenge the showcause notices. They include builders, companies dealing in agricultural products, mining entities and tyre manufacturers.

Apart from these 81 LLPs, another 12 have applied for cancellation of their names on the list.

Tarun Ghia, chartered accountant, says: "Though the RoC plans to strike off their registration, action can also be taken against these companies. Even if a company does not exist in the RoC listing, the nodal ministry can initiate proceedings."

As mentioned earlier, the RoC had recently de-registered about 100,000 companies. Some of these are likely to face a probe by the Enforcement Directorate, for the breach of the Prevention of Money Laundering Act. Another 300,000 companies are on the ministry's radar in this regard, it appears.

The country had a little more than 1.6 million companies registered as on end-May. Of these, 1.3 million are active.