Cabinet approves an ordinance to alter Companies Act to declog NCLTs

This move was recommended so as to bring down the NCLT's load

The Union Cabinet on Thursday approved an ordinance to change the Companies Act to declog national company law tribunals (NCLTs) and decriminalise minor offences by companies.

The ordinance will transfer 90 per cent of the cases to regional directors under the Ministry of Corporate Affairs from the NCLTs.

A senior official from the ministry told Business Standard, “The way the Act is being amended, regional directors will be able to look into the cases. With this amendment, 90 per cent company law cases will move from NCLTs to regional directors.”

The status of all non-compoundable offences will be retained since