Lok Sabha Question No. 2796 (UNSTARRED), answered on 2018-08-03
Subject: Non-Filing of Annual Statements by Companies
Ministry: CORPORATE AFFAIRS
Asked by: ANIL SHIROLE, PARBHUBHAI NAGARBHAI VASAVA, George Baker

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 2796 ANSWERED ON FRIDAY, THE 3RD AUGUST, 2018 [SHRAVANA 12, 1940 (SAKA)]

## NON-FILING OF ANNUAL STATEMENTS BY COMPANIES

## QUESTION

2796. SHRI ANIL SHIROLE:

SHRI PARBHUBHAI NAGARBHAI VASAVA:

SHRI GEORGE BAKER:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

कारपोरेट कार्य मंत्री

- (a) the details of the number of companies filed their financial statement during the last one year across the country, State/UT-wise;
- (b) the  details  of  the  number  of  companies  which  have  not  filed  their financial  statement  during  the  last  one  year  across  the  country,  State/UTwise including Maharashtra, Gujarat and West Bengal;
- (c) whether the Government has prepared a list of those shell companies;
- (d) if  so,  the  details  thereof  and  if  not,  the  reasons  therefor;  and  (e)  the steps taken/being taken by the Government against these shell companies?

## ANSWER

MINISTER OF STATE FOR LAW AND             (SHRI P. P. CHAUDHARY) JUSTICE AND CORPORATE AFFAIRS

- (a) & (b): The number of companies which have filed as well as which have not  filed  their  financial  statement  during  the  last  one  year  across  the country,  State/UT-wise  including  Maharashtra,  Gujarat  and  West  Bengal  is annexed as Annexure-I.
- (c) to (e): The  term  'Shell'  company  is  not  defined  under  the  Companies Act, 2013.  'Shell' Companies, in common parlance, refer to those companies which are not necessarily illegal, but are very often used for illegal purposes such  as  tax  evasion,  money  laundering,  obscuring  ownership,  siphoning  of funds,  manipulation  of  stock  prices  through  circular  trading,  holding  of benami properties, misusing bank loans and falsification of financial statements, etc.

During 2017-18 the Registrars of Companies (ROCs) had identified 2.97 lakh companies which were not filing their Financial Statements or Annual Returns  for  a  continuous  period  of  two  or  more  financial  years  and,  prima facie, either were not conducting any business or were not in operation. Out of  such identified companies, Registrars of Companies (ROCs) removed the names  of  2,26,166  such  companies  from  the  register  of  companies  by following  the  due  process  under  Section  248  of  the  Companies  Act,  2013. Further,  the  Central  Government  has  ordered  investigation  into  the  true ownership of 68 number of companies under section 216 read with section 210(1)  (c)  of  the  Act,  which  have  deposited  and  withdrawn  fund  in  an exception manner from the bank accounts during demonetization period.

Further,  during  financial  year  2018-19,  a  total  of  2,25,910  companies have also been identified for action under Section 248 of the Act on the basis of  non-  filing  of  due  returns  for  the  financial  Year  2015-16  &  2016-17.  Due procedure shall be followed by ROCs before striking off names of companies.

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## Annexure-I

## DETAILS OF THE NUMBER OF COMPANIES WHICH HAVE FILED AS WELL AS NOT FILED THEIR FINANCIAL STATEMENT DURING THE LAST ONE YEAR IN STATE/UTWISE ARE AS UNDER:

| Sl. No.   | Region (State, Province, County)   | Financial Statement filed   | Financial Statement not filed   | Annual Return filed   | Annual Return not filed   |
|-----------|------------------------------------|-----------------------------|---------------------------------|-----------------------|---------------------------|
| 1         | Andaman & Nicobar                  | 145                         | 80                              | 149                   | 78                        |
| 2         | Andhra Pradesh                     | 8,197                       | 8,709                           | 8,168                 | 8,708                     |
| 3         | Arunachal Pradesh                  | 106                         | 80                              | 106                   | 80                        |
| 4         | Assam                              | 4,271                       | 1,286                           | 4,290                 | 1,262                     |
| 5         | Bihar                              | 8,009                       | 6,768                           | 8,080                 | 6,699                     |
| 6         | Chandigarh                         | 4,718                       | 2,403                           | 4,767                 | 2,358                     |
| 7         | Chattisgarh                        | 4,587                       | 1,450                           | 4,598                 | 1,436                     |
| 8         | Daman and Diu                      | 170                         | 43                              | 169                   | 43                        |
| 9         | Delhi                              | 140,519                     | 46,204                          | 141,270               | 45,472                    |
| 10        | Dadra & Nagar Haveli               | 264                         | 90                              | 267                   | 88                        |
| 11        | Goa                                | 2,625                       | 1,004                           | 2,638                 | 992                       |
| 12        | Gujarat                            | 40,700                      | 14,206                          | 40,747                | 14,167                    |
| 13        | Himachal Pradesh                   | 1,707                       | 1,140                           | 1,743                 | 1,110                     |
| 14        | Haryana                            | 16,032                      | 7,050                           | 16,108                | 6,991                     |
| 15        | Jharkhand                          | 4,618                       | 2,846                           | 4,659                 | 2,818                     |
| 16        | Jammu & Kashmir                    | 1,143                       | 856                             | 1,157                 | 842                       |
| 17        | Karnataka                          | 37,213                      | 13,594                          | 37,392                | 13,452                    |
| 18        | Kerala                             | 15,856                      | 9,165                           | 15,974                | 9,062                     |
| 19        | Lakshadweep                        | 4                           | 6                               | 3                     | 7                         |
| 20        | Maharashtra                        | 136,335                     | 62,001                          | 137,122               | 61,149                    |
| 21        | Meghalaya                          | 380                         | 151                             | 389                   | 143                       |
| 22        | Manipur                            | 143                         | 109                             | 145                   | 107                       |
| 23 Madhya | Pradesh                            | 13,851                      | 4,653                           | 13,954                | 4,578                     |
| 24        | Mizoram                            | 23                          | 20                              | 23                    | 20                        |
| 25        | Nagaland                           | 93                          | 92                              | 93                    | 92                        |
| 26        | Orissa                             | 7,933                       | 4,253                           | 7,990                 | 4,203                     |
| 27        | Punjab                             | 10,213                      | 4,559                           | 10,274                | 4,508                     |
| 28        | Pondicherry                        | 596                         | 461                             | 608                   | 451                       |
| 29        | Rajasthan                          | 24,204                      | 7,766                           | 24,222                | 7,745                     |
| 30        | Telangana                          | 29,975                      | 27,383                          | 30,094                | 27,230                    |
| 31        | Tamil Nadu                         | 40,992                      | 22,649                          | 41,004                | 22,619                    |
| 32        | Tripura                            | 120                         | 110                             | 122                   | 106                       |
| 33        | Uttar Pradesh                      | 34,843                      | 18,173                          | 34,982                | 18,049                    |
| 34        | Uttarakhand                        | 2,360                       | 1,058                           | 2,372                 | 1,047                     |
| 35        | West Bengal                        | 104,169                     | 22,599                          | 104,038               | 22,695                    |
| Total     | Overall Result                     | 697,115                     | 293,017                         | 699,718               | 290,407                   |

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