2.25 lakh shell firms to be struck off Register of Companies

The task force on shell companies set up by the government has identified more than 2.25 lakh such firms which will be removed from the register of companies in the current financial year, an official statement said on Friday.

A Finance Ministry release here said that in the 2017-18 fiscal ended March, the registrar of companies (ROC) removed the names of over 2.26 lakh companies from its register and disqualified 3.09 lakh directors.

"During financial year 2017-18, ROCs identified and removed from the register of companies the names of 2,26,166 companies, while 3,09,619 directors were disqualified," it said.

"A second drive is to be launched during the current financial year 2018-19. A total of 2,25,910 companies have been identified for being struck-off under section 248 of the Companies Act."

The task force under the joint chairmanship of the Finance and Corporate Affairs Secretaries had been constituted last year. It has compiled a database of shell companies by the Serious Fraud Investigation Office, the statement said.

"The ex-directors/authorized signatories of the struck-off companies have been restricted from operating the bank accounts of these companies and they cannot withdraw any amount from these bank accounts, other than for specified purposes, till the company is restored u/s 252 of the Companies Act," it added.

--IANS

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