Government to take action against 2.25 lakh companies for not filing financial statement

• The government on Friday said it will take action against over 2.25 lakh companies as they have not filed requisite financial statement for 2015-16 and 2016-17.

• The 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,” Ministries of State for Corporate Affairs P. P. Chaudhary said in a written reply to the Lok Sabha.

• “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.

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