Lok Sabha Question No. 167 (STARRED), answered on 2017-12-29
Subject: Non-functional/closed/Fake Companies
Ministry: CORPORATE AFFAIRS
Asked by: GOPALAKRISHNAN CHINNARAJ

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA STARRED QUESTION NO. 167 ANSWERED ON FRIDAY, THE 29 TH  DECEMBER, 2017 [PAUSHA 08, 1939 (SAKA)]

NON-FUNCTIONAL/CLOSED/FAKE COMPANIES

## QUESTION

*167. DR. C. GOPALAKRISHNAN:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) the  number  of  registered  companies  with  the  Registrar  of Companies(RoC) in the country as on date along with the details of such companies amongst them which have been closed, State/UTwise;
- (b) the details of the steps taken by the Government to identify the number of companies which are not functioning or out of business but continue to be on the records of the Government, State/UT-wise;
- (c) whether the Government has conducted any study to ascertain the  reasons  for  their  being  out  of  business  and  if  so,  the  details thereof; and
- (d) the  details  of  the  measures  taken  by  the  Government  to deregister such fake companies?

ANSWER

THE MINISTER OF CORPORATE AFFAIRS              (SHRI ARUN JAITLEY)

(a) to (d) A statement is laid on the Table of the House. *******

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF THE STARRED  QUESTION  NO.  167  FOR  ANSWER  IN  LOK  SABHA ON 29.12.2017

(a) & (b): The  State/Union  Territories  (UTs)-wise  total  number  of companies  registered  and  closed  as  on  30.11.2017  is  as  per Annexure-A.  Further, the removal of names of the companies which are  not  in  operation  or  conducting  any  business,  is  a  continuous function.    The  Registrar  of  Companies  (ROCs)  have  identified  2.97 lakh companies during 2017-18 which were not filing their Financial Statements or Annual Returns for a continuous period of two or more financial years  and, prima facie, were not conducting any business or  in  operation.    Out  of  such  identified  companies,  ROCs  have removed the names of 2,26,166 such companies as on 19.12.2017 from the register of companies by following the due process under Section 248 of the Companies Act, 2013.  The State/Union Territories (UTs)-wise details of such 2,26,166 companies are as per AnnexureB.

(c) & (d): No Madam.  Does not arise. *******

## Annexure - A

## ANNEXURE REFERRED TO IN REPLY TO THE STARRED QUESTION NO. 167

## FOR ANSWER IN LOK SABHA ON 29.12.2017

Details of States & Union Territories (UTs) wise Companies registered & closed as on 30.11.2017 are as under:

| Sl. No.      | Name of States & Union Territories (UTs)   |   Number of Companies on the Registry |   Closed Companies |
|--------------|--------------------------------------------|---------------------------------------|--------------------|
| 1            | Andhra Pradesh                             |                                 26951 |               5959 |
| 2            | Delhi                                      |                                314259 |              98159 |
| 3            | Gujarat                                    |                                 93197 |              28273 |
| 4            | Jharkhand                                  |                                 11795 |               1860 |
| 5            | Karnataka                                  |                                101649 |              35460 |
| 6            | Maharashtra                                |                                344264 |             111621 |
| 7            | Telangana                                  |                                 94366 |              25408 |
| 8 West       | Bengal                                     |                                195923 |              56805 |
| 9            | Bihar                                      |                                 27052 |               4300 |
| 10           | Haryana                                    |                                 37421 |               7408 |
| 11           | Kerala                                     |                                 45905 |              15342 |
| 12           | Orissa                                     |                                 22402 |               7506 |
| 13           | Punjab                                     |                                 29035 |              12002 |
| 14           | Rajasthan                                  |                                 53034 |              14357 |
| 15           | Tamil Nadu                                 |                                132669 |              55001 |
| 16           | Assam                                      |                                 10489 |               3057 |
| 17           | Chandigarh                                 |                                 13978 |               5800 |
| 18 Uttar     | Pradesh                                    |                                 88926 |              20430 |
| 19           | Andaman & Nicobar                          |                                   383 |                 82 |
| 20 Arunachal | Pradesh                                    |                                   550 |                256 |
| 21           | Chattisgarh                                |                                  9080 |               2107 |
| 22 Dadra &   | Nagar Haveli                               |                                   494 |                 95 |
| 23 Daman     | and Diu                                    |                                   353 |                 77 |
| 24           | Goa                                        |                                  8103 |               3325 |
| 25           | Himachal Pradesh                           |                                  5607 |               2060 |
| 26           | Jammu & Kashmir                            |                                  4903 |               2193 |
| 27           | Lakshadweep                                |                                    14 |                  3 |
| 28           | Madhya Pradesh                             |                                 35098 |              13189 |
| 29           | Manipur                                    |                                   623 |                163 |
| 30           | Meghalaya                                  |                                  1054 |                364 |
| 31           | Mizoram                                    |                                   122 |                 58 |

| 32   | Nagaland    |     555 |    274 |
|------|-------------|---------|--------|
| 33   | Pondicherry |    3166 |   1762 |
| 34   | Tripura     |     426 |    101 |
| 35   | Uttarakhand |    6472 |   1648 |
|      | Total       | 1720318 | 536505 |

******

Annexure-B

## ANNEXURE REFERRED TO IN REPLY TO THE STARRED QUESTION NO. 167 FOR ANSWER IN LOK SABHA ON 29.12.2017

Details of States/Union Territories (UTs)-wise companies removed from the register of companies as on 19.12.2017 are as under:

| Sl. No.   | Name of States & Union Territories (UTs)   |   Number of companies removed from the register of companies |
|-----------|--------------------------------------------|--------------------------------------------------------------|
| 1.        | Andaman & Nicobar Islands                  |                                                           76 |
| 2.        | Andhra Pradesh                             |                                                         3633 |
| 3.        | Arunachal Pradesh                          |                                                           14 |
| 4.        | Assam                                      |                                                          172 |
| 5.        | Bihar                                      |                                                         1557 |
| 6.        | Chandigarh                                 |                                                         1453 |
| 7.        | Chhattisgarh                               |                                                          906 |
| 8.        | Dadra & Nagar Haveli                       |                                                           46 |
| 9. Daman  | and Diu                                    |                                                           13 |
| 10.       | Delhi                                      |                                                        43925 |
| 11.       | Goa                                        |                                                         1744 |
| 12.       | Gujarat                                    |                                                        11389 |
| 13.       | Haryana                                    |                                                         3882 |
| 14.       | Himachal Pradesh                           |                                                          754 |
| 15.       | Jammu & Kashmir                            |                                                         1394 |
| 16.       | Jharkhand                                  |                                                          636 |
| 17.       | Karnataka                                  |                                                        18165 |
| 18.       | Kerala                                     |                                                         4059 |
| 19.       | Lakshadweep                                |                                                            3 |
| 20.       | Madhya Pradesh                             |                                                         4702 |
| 21.       | Maharashtra                                |                                                        59849 |
| 22.       | Manipur                                    |                                                            9 |
| 23.       | Meghalaya                                  |                                                           30 |
| 24.       | Mizoram                                    |                                                            2 |
| 25.       | Nagaland                                   |                                                            6 |
| 26.       | Orissa                                     |                                                         1824 |
| 27.       | Pondicherry                                |                                                          571 |
| 28.       | Punjab                                     |                                                         2928 |
| 29.       | Rajasthan                                  |                                                         5178 |
| 30.       | Tamil Nadu                                 |                                                        24723 |
| 31.       | Telangana                                  |                                                        16817 |
| 32.       | Tripura                                    |                                                           14 |
| 33. Uttar | Pradesh                                    |                                                         6822 |

| 34.   | Uttarakhand   |    792 |
|-------|---------------|--------|
| 35.   | West Bengal   |   8078 |
|       | Total         | 226166 |

*******