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Govt to take action against 2.25 lakh companies for not filing financial statements

Section 248 of the Companies Act -- which is implemented by the corporate affairs ministry -- provides powers to strike off names of companies from the register on various grounds, including for being inactive for long.

Edited by: India TV News Desk, New Delhi [ Updated: August 03, 2018 19:56 IST ]

Minister of State for Corporate Affairs P P Chaudhary 

The Union government on Friday said that it will take action against over 2.25 lakh companies for failing to file requisite financial statements for 2015-16 and 2016-17.

In a written reply in the Lok Sabha, Minister of State for Corporate Affairs P P Chaudhary said that Ministry of Corporate Affairs (MCA) has already struck off over 2.26 lakh companies for non-filing of financial statements or annual returns for a continuous period of two years or more.

"During the financial year 2018-19, a total of 2,25,910 companies have also been identified for action under section 248 of the (Companies) Act for non-filing of due returns for the financial year 2015-16 and 2016-17," Chaudhary said.

"Due procedure shall be followed by Registrars of Companies (ROCs) before striking off names of the companies," he added.

Section 248 of the Companies Act -- which is implemented by the corporate affairs ministry -- provides powers to strike off names of companies from the register on various grounds, including for being inactive for long.

(With PTI inputs)

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