Lok Sabha Question No. 994 (UNSTARRED), answered on 2021-02-08
Subject: Schemes Launched during Covid-19 Pandemic
Ministry: CORPORATE AFFAIRS
Asked by: Bholanath (B.P. Saroj)

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UN-STARRED QUESTION NO. 994

ANSWERED ON MONDAY, FEBRUARY 8, 2021/ MAGHA 19, 1942 (SAKA)

## SCHEMES LAUNCHED DURING COVID-19 PANDEMIC QUESTION

994. SHRI BHOLANATH (B.P. SAROJ): Will the Minister of CORPORATE AFFAIRS be pleased to state:

कॉरपोरेट कार्य मंत्री

- (a) the details of the schemes launched by the Ministry during the Covid-19 pandemic and till  date  along  with  the  targets  set  and  the  achievements  made  under  each  of  the  said schemes;
- (b)  the  details  of  the  proposals  received  from  various  State  along  with  the  proposals approved by the Union Government under these schemes of the Ministry, State/ UT-wise;
- (c) the details of the funds allocated and utilised for implementation of various schemes of the Ministry during each of the last four years and the current year, scheme/ state-wise; and
- (d)  whether the Government has set any time-limit for completing the pending schemes and if so, the details thereof?

## ANSWER

(SHRI ANURAG SINGH THAKUR)

( श्री अनुराग व ंह ठाक ु र )

THE MINISTER OF STATE FOR FINANCE AND CORPORATE AFFAIRS

वित्त एिं कॉरपोरेट कार्य मंत्रालर् में राज्य मंत्री

- (a)  to  (d):  The  Government  in  the  Ministry  of  Corporate  Affairs  (MCA)  administers  the provisions  of  the  Companies  Act,  2013  (herein  after  called  as  the  Act)  and  the  Limited Liability  Partnerships  ('LLPs')  Act,  2008  and  the  Insolvency  and  Bankruptcy  Code  (IBC), 2016. Information pertaining to MCA is as under:
1. Schemes launched by the MCA during Covid-19 pandemic:-
- (i) Companies Fresh Start Scheme (CFSS) 2020:- Through the General Circular no. 12/2020 dated 30.03.2020, the Ministry launched the "Companies Fresh Start Scheme, 2020 which inter- alia provides opportunities to Companies to make good any filing related defaults, regardless of duration of defaults, and make a fresh start as a fully compliant entity. The Scheme  condoned  the  delay  in  filing  the  belated  documents  and  gives  immunity  from prosecutions and proceedings for imposition of penalty which might arise on account of such delayed filing of documents. No additional fees was charged for late filing during a moratorium period from 1st April to 31st December, 2020 in respect of documents, returns etc.  required  to  be  filed  in  MCA-21  Registry.  As  per  records,  473131  number  of  Indian Companies and 1065 number of Foreign Companies have been benefited by availing the CFSS, 2020 scheme for filing their pending documents.
- (ii)  LLP  Settlement  Scheme,  2020:- This  Ministry  vide  notification  dated  04.03.2020 introduced  LLP   Settlement  Scheme,  2020  to  provide  one-time  relaxation  in  additional fees to the defaulting Limited Liability Partnerships ('LLPs') to make good their defaults by filing  pending  documents with the Registrar of Companies ('ROC' or 'Registrar') to ease the  hassle  of  business  enterprises.  The  LLP  settlement  scheme  was  initially  rolled  out from 16.03.2020 to 31.03.2020 for certain filings by LLPs.

Further,  due  to  the  COVID-19  pandemic  the  said  scheme  was  further  modified  and expanded  from  01.04.2020  to  31.12.2020  to  cover  all  e-forms.   As  per  records  105643 number of LLPs have been benefited by availing the LLP settlement scheme 2020 for filing their pending documents. (iii)  Scheme  for  relaxation  of  time  for  filing  forms  related  to  creation  or  modification  of charges under the Act:- In pursuance of the Government of India's efforts to provide relief to law abiding companies and in the wake of COVID 19 pandemic, the MCA has introduced the Scheme for relaxation of time for filing forms related to creation or modification of charges under the Act, vide General Circular no. 23/2020 dated 17th June, 2020. As per the scheme:(a)  where  the  date  of  creation  /  modification  of  charge  is  before  01.03.2020,  but  the timeline for filing such form had not expired under section 77 of the Act as on 01.03.2020 and if the form is filed on or before 31.12.2020, the fees payable as on 29.02.2020 under the  Fees  Rules  for  the  said  form  shall  be  charged.  If  the  form  is  filed  thereafter,  the applicable fees shall be charged under the Fees Rules after adding the number of days beginning from 01.01.2021 and, ending on the date of filing plus the time period lapsed from the date of the creation of charge till 29.02.2020. (b)  where  the  date  of  creation  /  modification  of  charge  is  falls  on  any  date  between 01.03.2020 to 31.12.2020 and If the form is filed before 31.12.2020, normal fees shall be payable under the Fees Rules. If the form is filed thereafter, the First day after the date of creation/ modification of charge shall be reckoned as 01.01.2021 and the number of days till the date of filing of the form shall be counted accordingly for the purposes of payment of fees under the Fees Rules. (iv)  Scheme  for  Condonation  of  delay  for  Restored  Companies  by  NCLT  between 01 st  December, 2020 to 31 st  December, 2020:- In order to provide benefit of filing overdue forms  and  to  provide  waiver  of  additional  fees  for  restored  companies  by  National Company  Law  Tribunal  (NCLT),  the  Ministry  vide  Circular  No.  3/2021  dated  15.01.2021 announced  a  Condonation  of  Delay  Scheme  for  Companies  restored  by  NCLT  between 1 st  December,  2020  to  31 st  December,  2020  under  section  252  of  the  Act. The  Scheme provides  to  condone  delay  in  filing  forms  with  the  Registrar,  and  spares  payment  of additional  fees.  Certain  other  terms  are  stipulated  and  are  available  in  the  Scheme document. This Scheme is in operation from 01 st  February 2021 and will be available for filing of any overdue e-forms by such companies till 31 st  March 2021. Further,  MCA  has  raised  the  threshold  of  default  under  section  4  of  Insolvency  and Bankruptcy Code (IBC) to Rs. One crore from the existing threshold of Rs. One Lakh vide notification  dated  24.03.2020.  IBC  (Second  Amendment)  Act,  2020  was  notified  on 23.09.2020  giving  effect  from  05.06.2020    for  inserting  Section  10  A  to  IBC  which  has provided  for  temporary  suspension  of  initiation  of  Corporate  Insolvency  Resolution Process  (CIRP)  u/s  7,9  and  10  of  the  Code  for  a  period  of  six  months  or  such  further period not exceeding one year from 25th March, 2020.The benefit of the suspension is applicable to all those defaults of the corporate debtors that occur from 25 th  March, 2020 and  till  the  end  of  period  of  suspension.  The  said  suspension  has  been  extended  vide notification  dated  22.12.2020 for  further  period  of  three  months  from  25.12.2020.  Such defaults arising between 25 th  March, 2020 and till completion of suspension period will remain  as  non-est  for  the  purpose  of  initiation  of  CIRP  under  the  Code  as  Permanent carve out. Section 66 of IBC has also been amended to provide protection to directors from personal liability for Covid period defaults.

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