40% firms failing to file returns under MCA lens, may get deregistered

The ministry has found that even after these companies were de-registered, their directors were not vacating offices - as they are supposed to Companies Act

Forty per cent of the 1.4 million companies registered with the Registrar of Companies (RoC) do not file statutory returns, sources in the Ministry of Corporate Affairs (MCA) have said. This means 560,000 companies are on the radar of the ministry, which might decide to deregister them.
 

In the 2017-18 financial year, the RoC de-registered 226,000 companies for not filing statutory returns, such as financial statements. The MCA had considered non-filing of statutory returns from 2013-14 to 2015-16. 
 

The ministry has found that even after these companies were de-registered, their directors were not vacating offices — as they are supposed