Lok Sabha Question No. 53 (UNSTARRED), answered on 2017-12-15
Subject: Easy Exit Scheme
Ministry: CORPORATE AFFAIRS
Asked by: George Baker

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 53 ANSWERED ON FRIDAY, THE 15 TH  DECEMBER, 2017/ AGRAHAYANA 24, 1939 (SAKA)

## EASY EXIT SCHEME

## QUESTION

## 53.  SHRI GEORGE BAKER:

Will the Minister of CORPORATE AFFAIRS

मंत्री be pleased to state:

कारपोरेट कार्य

- (a)  the salient features of the Easy Exit Scheme along with its present status;
- (b)  the details of the number of companies that availed the Fast Track Exit Mode for striking their names off the register during the last three years, State/UT-wise;
- (c)  the details of the target set and achievements made under this scheme so far; and
- (d)  whether the number of defunct/inactive companies is increasing in the country, if so, the reasons therefor and the action taken/being taken by the Government in this regard?

## ANSWER

MINISTER OF STATE FOR LAW AND JUSTICE AND CORPORATE AFFAIRS

विवि और न्याय एिं कारपोरेट कायय मंत्रालय में राज्य मंत्री

(a):- The Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016 prescribed under section 248 of the Companies Act, 2013 (the Act) were notified on 26.12.2016 and provide for striking off/removing the name of a company from the register of companies maintained in the online MCA21 registry. These Rules have superseded the Easy Exit Scheme/Fast Track Exit scheme. Consequently, except for those cases where applications had already been filed before commencement of the abovementioned  Rules,  no  further  application  can  be  made  under  the  Easy  Exit Scheme/Fast Track Exit mode. Section 248 of the Act provides that the Registrar can remove  the  name  of  the  company  from  the  Register  of  Companies  where  he  has reasonable cause to believe that the company has failed to commence its business within one year of its incorporation or the company is not carrying on any business or operation for two immediately preceding financial years and has also not applied for obtaining status of dormant company under Section 455 of the Act.  Further, these Rules also provide for a company to apply to the Registrar after complying with the prescribed provisions/ procedures for removal of its name.

(SHRI P. P. CHAUDHARY)

( श्री पी. पी. चौधरी )

(b) to (d):- State/UT wise details of companies struck off under Fast Tract Exit mode and  Companies  (Removal  of  Names  of  Companies  from  the  Register  of  Companies) Rules, 2016 during the last three years are attached as Annexure. No specific targets for Fast Track Exit mode /Easy Exit Scheme were prescribed. Data with regard to trend of  increase/decrease  in  defunct/inactive  companies  is  not  available.    However,  the Ministry has recently removed/struck off more than 2,24,000 companies under section 248 of the Act.

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## ANNEXURE

## ANNEXURE REFERRED TO IN REPLY TO LOK SABHA UNSTARRED QUESTION NO. 53

Details of companies Struck off under Fast Tract Exit mode and Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016

| States/UTs                | 2014-15   | 2015-16   | 2016-17   |
|---------------------------|-----------|-----------|-----------|
| Andaman & Nicobar Islands | 0         | 0         | 1         |
| Andhra Pradesh            | 345       | 56        | 2         |
| Arunachal Pradesh-        | 0         | 1         | 3         |
| Assam                     | 25        | 47        | 37        |
| Bihar                     | 113       | 225       | 99        |
| Chandigarh                | 347       | 179       | 123       |
| Chhattisgarh              | 48        | 50        | 72        |
| Daman and Diu             | 1         | 0         | 4         |
| Delhi                     | 2311      | 3154      | 2360      |
| Dadar & Nagar Haveli      | 5         | 4         | 0         |
| Goa                       | 65        | 0         | 137       |
| Gujarat                   | 546       | 908       | 714       |
| Himachal Pradesh          | 34        | 111       | 77        |
| Haryana                   | 222       | 393       | 278       |
| Jharkhand                 | 27        | 150       | 55        |
| Jammu and Kashmir-        | 35        | 10        | 37        |
| Karnataka                 | 862       | 596       | 150       |
| Kerala                    | 323       | 445       | 346       |
| Maharashtra               | 1664      | 1462      | 3344      |
| Meghalaya                 | 4         | 5         | 8         |
| Madhya Pradesh            | 176       | 470       | 362       |
| Mizoram                   | 0         | 0         | 3         |
| Nagaland                  | 0         | 3         | 1         |
| Orissa                    | 413       | 56        | 56        |
| Punjab                    | 575       | 240       | 205       |
| Pondicherry               | 16        | 17        | 15        |
| Rajasthan                 | 577       | 720       | 504       |
| Telangana                 | 246       | 6         | 4         |
| Tamil Nadu                | 838       | 1202      | 804       |
| Tripura                   | 2         | 2         | 2         |
| Uttar Pradesh             | 512       | 984       | 149       |
| Uttarakhand               | 86        | 32        | 13        |
| West Bengal               | 1107      | 1002      | 1097      |
| (blank)                   |           |           |           |

| Grand Total   | 11525   | 12530   | 11062   |
|---------------|---------|---------|---------|

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