Lok Sabha Question No. 3492 (UNSTARRED), answered on 2022-08-08
Subject: Voluntary Winding up of Companies
Ministry: CORPORATE AFFAIRS
Asked by: Abhishek Banerjee, Ravneet Singh

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 3492 ANSWERED ON MONDAY THE 8 TH  AUGUST, 2022 SRAVANA 17, 1944 (SAKA)

## VOLUNTARY WINDING UP OF COMPANIES QUESTION

3492. SHRI ABHISHEK BANERJEE: SHRI RAVNEET SINGH BITTU:

Will the Minister of CORPORATE AFFAIRS be pleased to state:

- (a) whether  the  Government  has  changed  the  rules  on  voluntary  winding  up  of companies, if so, the details thereof along with the reasons therefor including the number and percentage of total companies voluntarily wound up during each of the last five years, State/UT-wise;
- (b) the  expected  increase  or  decrease  in  this  number  based  on  the  new  rules permitting electronic filling of winding up petitions;
- (c) the number of companies adjudged dormant and never taking up operations during the said period;
- (d) the number of companies struck off the list of registered companies for defaulting on the statutory filings during the said period; and
- (e) whether the Government has taken any other measures to address the issue of industrial sickness, if so, the details thereof and if not, the reasons therefor?

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF STATISTICS AND PROGRAMME IMPLEMENTATION; MINISTER OF STATE (INDEPENDENT CHARGE) OF THE  MINISTRY  OF  PLANNING;  AND  MINISTER  OF  STATE  IN  THE  MINISTRY  OF CORPORATE AFFAIRS

[RAO INDERJIT SINGH]

- (a) and (b) : There is no rule making power provided under section 59 'Voluntary liquidation for corporate persons' in the Insolvency and Bankruptcy Code, 2016.
- (c) :  Dormant company  is  covered  under  the  provisions  of  section  455  of  the Companies Act, 2013 (the Act). The number of Companies having dormant status as per such provisions, during the last five years are as under:
- (d) :  Section  248  of  the Act  provides  for  removal  of  name  of  company  from  the Register of companies, if it is not carrying on any business or operation for a period of 2 immediately preceding financial years and has not made any application within the said period for obtaining the status of a Dormant Company under section 455 of the Act. The removal of the name of the company from the Register of Companies is a continuous process and a total of 4,32,796 companies have been struck of during last five years and its year wise details are as under:
- (e) : As per information provided by the Department for Promotion of Industry and Internal Trade, no such measure has been taken.

| Year                        |   2017-18 |   2018-19 |   2019-20 |   2020-21 |   2021-22 |
|-----------------------------|-----------|-----------|-----------|-----------|-----------|
| Number of dormant Companies |       451 |       362 |       570 |        81 |       116 |

| Year                           | 2017-18   | 2018-19   | 2019-20   | 2020-21   | 2021-22   |
|--------------------------------|-----------|-----------|-----------|-----------|-----------|
| Number of Struck off Companies | 2,26,166  | 1,12,797  | 43,912    | Nil       | 49,921    |

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