Lok Sabha Question No. 4001 (UNSTARRED), answered on 2016-12-09
Subject: Non-functional Companies
Ministry: CORPORATE AFFAIRS
Asked by: REKHA ARUN VERMA

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 4001 ANSWERED ON FRIDAY THE 9 th  DECEMBER, 2016 [AGRAHAYANA 18, 1938(SAKA)]

## NON-FUNCTIONAL COMPANIES QUESTION

4001. SHRIMATI REKHA VERMA:

Will the Minister of CORPORATE AFFAIRS कारपोरेट कार्य मंत्री be pleased to state:

- (a) whether the number of non-functional companies has increased in the country including Uttar Pradesh;
- (b) if so, the details thereof and the reasons therefor, for the last three years and during current year, Year/State/UT-wise;
- (c) whether there is any scheme/provision for easy exit of these nonfunctional companies from the ROCs; and
- (d) if so, the details along with the companies which have exited from ROCs thereof, Year/State/UT-wise?

## ANSWER

`

THE MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS   (SHRI ARJUN RAM MEGHWAL)

कारपोरेट कार्य मंत्रालय में राज्य मंत्री ( श्री अर्जुन राम मेघवाल )

(a)&(b)  Companies  Act  does  not  define  Non-functional  Companies.

Section  455  of  Companies  Act  2013  defines  'inactive  company'  as  a company which has not been carrying on any business or operation,

or has not made any significant accounting transaction during the last two financial years, or has not filed financial statements and annual returns during the last two financial years.  State/UT-wise number of inactive  companies  for  the  last  three  years  and  current  year  is  at Annexure-I

(c)  &  (d):-    Section  560  of  the  Companies  Act,  1956  (corresponding provision  in  Companies  Act,  2013  is  Section  248,  which  is  not  yet notified) provides for striking off the names of those companies which have not been carrying on business or not in operation, if the Registrar of  Companies  has  a  reason  to  believe  so,  after  following  prescribed procedure.  During June 2011, the Ministry had introduced a Fast Track Exit  (FTE)  mode  for  defunct  companies  to  approach  the  Registrar  of Companies from time to time for striking off their names, which is still continuing.  The  number  of  companies  which  have  been  struck  off, including those which availed FTE mode during the years 2013-14, 201415, 2015-16 and (till 30.11.2016) are given in Annexure-II.

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Annuexure-I Annexure referred to in Part (a) & (b) of the Answer to Lok Sabha Unstarred Question No.4001 for 9.12.2016

| Number of inactive companies   | Number of inactive companies   | Number of inactive companies   | Number of inactive companies   | Number of inactive companies   |
|--------------------------------|--------------------------------|--------------------------------|--------------------------------|--------------------------------|
| State/UT                       | As on 31.03.2014               | As on 31.03.2015               | As on 31.03.2016               | up to 31.10.2016               |
| Andaman and Nicobar Islands    | 46                             | 46                             | 46                             | 46                             |
| Andhra Pradesh                 | 22,968                         | 5,390                          | 5,374                          | 5,365                          |
| Arunachal Pradesh              | 10                             | 9                              | 9                              | 9                              |
| Assam                          | 176                            | 174                            | 174                            | 173                            |
| Bihar                          | 1,244                          | 1,208                          | 1,205                          | 1,204                          |
| Chandigarh                     | 1,120                          | 1,103                          | 1,090                          | 1,090                          |
| Chhattisgarh                   | 255                            | 244                            | 243                            | 243                            |
| Dadar Nagar Haveli             | 56                             | 51                             | 45                             | 50                             |
| Daman and Diu                  | 23                             | 22                             | 15                             | 22                             |
| Delhi                          | 28,564                         | 28,179                         | 28,076                         | 28,066                         |
| Goa                            | 452                            | 443                            | 440                            | 438                            |
| Gujarat                        | 11,019                         | 10,846                         | 10,823                         | 10,793                         |
| Haryana                        | 2,188                          | 2,169                          | 2,154                          | 2,101                          |
| Himachal Pradesh               | 427                            | 413                            | 410                            | 410                            |
| Jammu and Kashmir              | 984                            | 978                            | 974                            | 972                            |
| Jharkhand                      | 635                            | 614                            | 611                            | 607                            |
| Karnataka                      | 8,040                          | 7,884                          | 7,823                          | 7,834                          |
| Kerala                         | 2,273                          | 2,212                          | 2,194                          | 2,177                          |
| Lakshadweep                    | 2                              | 2                              | -                              | 2                              |
| Madhya Pradesh                 | 1,363                          | 1,335                          | 1,320                          | 1,311                          |
| Maharashtra                    | 34,704                         | 33,919                         | 33,717                         | 33,598                         |
| Manipur                        | 17                             | 17                             | 17                             | 17                             |
| Meghalaya                      | 14                             | 13                             | 13                             | 13                             |
| Mizoram                        | 7                              | 7                              | 7                              | 7                              |
| Nagaland                       | 25                             | 25                             | 25                             | 25                             |

-

| Orissa        | 576     | 566     | 567     | 562     |
|---------------|---------|---------|---------|---------|
| Pondicherry   | 230     | 228     | 227     | 227     |
| Punjab        | 2,065   | 2,014   | 2,000   | 2,000   |
| Rajasthan     | 1,424   | 1,390   | 1,383   | 1,381   |
| Sikkim        | -       | -       | -       | -       |
| Tamil Nadu    | 15,721  | 15,413  | 15,375  | 15,352  |
| Telangana     |         | 17,210  | 17,150  | 17,133  |
| Tripura       | 5       | 5       | 5       | 5       |
| Uttar Pradesh | 4,818   | 4,371   | 4,320   | 4,317   |
| Uttarakhand   | 87      | 82      | 81      | 82      |
| West Bengal   | 835     | 791     | 778     | 778     |
| Grand Total   | 142,373 | 139,373 | 138,691 | 138,410 |

*****

## Annexure referred to in Part ( c) & (d) of the  Answer to Lok Sabha Unstarred  Question No.4001

Annexure-II for 9.12.2016

| Number of companies struck off   | Number of companies struck off   | Number of companies struck off   | Number of companies struck off   | Number of companies struck off   | Number of companies struck off   |
|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|----------------------------------|
| Sl. No.                          | State/UT                         | As on 31.03.2014                 | As on 31.03.2015                 | As on 31.03.2016                 | up to 31.10.2016                 |
| 1                                | Andaman and Nicobar Islands      | 5                                | 5                                | 5                                | 5                                |
| 2                                | Andhra Pradesh                   | 8,038                            | 2,061                            | 2,175                            | 2,083                            |
| 3                                | Arunachal Pradesh                | 234                              | 234                              | 235                              | 240                              |
| 4                                | Assam                            | 2,630                            | 2,644                            | 2,684                            | 2,714                            |
| 5                                | Bihar                            | 2,278                            | 2,410                            | 2,624                            | 3,250                            |
| 6                                | Chandigarh                       | 3,601                            | 3,933                            | 4,110                            | 4,185                            |
| 7                                | Chhattisgarh                     | 984                              | 1,017                            | 1,070                            | 1,085                            |
| 8                                | Dadra &Nagar Haveli              | 31                               | 35                               | 41                               | 39                               |
| 9                                | Daman and Diu                    | 51                               | 51                               | 50                               | 54                               |
| 10                               | Delhi                            | 38,674                           | 40,977                           | 44,165                           | 45,393                           |
| 11                               | Goa                              | 1,177                            | 1,227                            | 1,263                            | 1,346                            |
| 12                               | Gujarat                          | 12,476                           | 12,939                           | 13,795                           | 14,083                           |
| 13                               | Haryana                          | 2,206                            | 2,428                            | 2,826                            | 2,941                            |
| 14                               | Himachal Pradesh                 | 1,046                            | 1,081                            | 1,184                            | 1,232                            |
| 15                               | Jammu and Kashmir                | 561                              | 593                              | 611                              | 626                              |
| 16                               | Jharkhand                        | 963                              | 1,067                            | 1,145                            | 619                              |
| 17                               | Karnataka                        | 13,768                           | 14,599                           | 15,194                           | 15,383                           |
| 18                               | Kerala                           | 8,453                            | 8,774                            | 9,308                            | 9,480                            |
| 19                               | Lakshadweep                      | -                                |                                  | -                                | -                                |
| 20                               | Madhya Pradesh                   | 7,109                            | 7,298                            | 7,694                            | 7,851                            |
| 21                               | Maharashtra                      | 45,936                           | 29,862                           | 31,346                           | 33,799                           |
| 22                               | Manipur                          | 154                              | 153                              | 153                              | 153                              |
| 23                               | Meghalaya                        | 314                              | 316                              | 321                              | 329                              |
| 24                               | Mizoram                          | 53                               | 53                               | 53                               | 54                               |
| 25                               | Nagaland                         | 262                              | 261                              | 262                              | 263                              |
| 26                               | Odisha                           | 5,055                            | 5,433                            | 5,478                            | 5,533                            |
| 27                               | Puducherry                       | 1,096                            | 1,117                            | 1,134                            | 1,137                            |
| 28                               | Punjab                           | 7,852                            | 8,405                            | 8,645                            | 8,766                            |
| 29                               | Rajasthan                        | 6,430                            | 6,994                            | 7,707                            | 8,071                            |
| 30                               | Sikkim                           | -                                | -                                | -                                | -                                |
| 31                               | Tamil Nadu                       | 24,535                           | 25,383                           | 26,585                           | 26,753                           |
| 32                               | Telangana                        | -                                | 6,448                            | 7,091                            | 7,144                            |
| 33                               | Tripura                          | 78                               | 80                               | 82                               | 83                               |
| 34                               | Uttar Pradesh                    | 10,680                           | 11,111                           | 12,129                           | 12,209                           |
| 35                               | Uttarakhand                      | 659                              | 743                              | 777                              | 775                              |
| 36                               | West Bengal                      | 37,816                           | 38,685                           | 39,548                           | 40,235                           |
| Grand                            | Total                            | 245,205                          | 238,417                          | 251,490                          | 257,913                          |

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