Lok Sabha Question No. 282 (UNSTARRED), answered on 2026-02-02
Subject: Action against Shell Companies
Ministry: CORPORATE AFFAIRS
Asked by: Dr. Shivaji Bandappa Kalge, Shri Bhumare Sandipanrao Asaram, Shri Nilesh Dnyandev Lanke, Shri Gyaneshwar Patil

## GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA UNSTARRED QUESTION NO. 282 ANSWERED ON MONDAY, 02 ND  FEBRUARY 2026 MAGHA 13, 1947 (SAKA)

## ACTION AGAINST SHELL COMPANIES

282.  Shri Nilesh Dnyandev Lanke:

Shri Bhumare Sandipanrao Asaram:

Shri Gyaneshwar Patil:

Dr. Shivaji Bandappa Kalge:

Will the Minister of Corporate Affairs be pleased to state:

- (a) the details of the number of shell companies identified, struck off or penalised across the country during the last three years and the specific measures taken to prevent their revival;
- (b) whether the Government is developing a real time data verification system to curb the issuance of fraudulent or fake Director Identification Numbers in the country;
- (c) if so, the details thereof particularly in respect of Maharashtra;
- (d) whether the Government has initiated any formal collaboration with enforcement agencies to monitor and track money laundering activities lined to such shell entities in the country;
- (e) if so, the State-wise details thereof including Maharashtra; and
- (f) if not, the reasons therefor?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFFAIRS; MINISTER

OF STATE IN THE MINISTRY OF ROAD TRASPORT AND HIGHWAYS.

[SHRI HARSH MALHOTRA]

(a) : The term 'Shell Company' is not defined in the Companies Act, 2013 (Act). However, from time to time, this Ministry carries out Strike-Off drive under section 248(1) for striking off such companies which are not carrying on any business or operation for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under section 455 of the Act or the subscribers to the memorandum have not paid the subscription which they had undertaken to pay at the time of incorporation of a company and a declaration to this effect has not been filed within one hundred and eighty days of its incorporation under sub-section (1) of section 10A of the Act. The last strike-off drive was carried out in the year 2022-23.

Further,  under  section  248(2)  of  the  Companies  Act,  2013  such companies which voluntarily seek removal of their name from the Registrar of  Companies  after  extinguishing  all  its  liabilities  are  struck  off  by following due process in the prescribed manner.

Total 1,27,346 Companies were Struck-off u/s 248 of the Companies Act, 2013 during the last 3 years and the current year and details are as under:

| Sl. No   | Details                   | Action U/s 248(1)   | Action U/s 248(2)   |
|----------|---------------------------|---------------------|---------------------|
| 1        | FY 2022-2023              | 68,893              | 13,169              |
| 2        | FY 2023-2024 -            |                     | 16,464              |
| 3        | FY 2024-2025              | -                   | 15,837              |
| 4        | FY 2025-2026              | -                   | 12,983              |
|          | Total number of Companies | 68,893              | 58,453              |

As per Section 252 of the companies Act, 2013 any person aggrieved by an order of the Registrar of Companies (RoC) passed under sections 248(1) & 248 (2) may file an appeal to the Tribunal. The Tribunal, after giving reasonable opportunity of hearing / making representation to all stakeholders  including  RoC,  has  the  power  to  order  restoration  of  the registration of the company.

(b) & (c) : The necessary validations and real time data verification system is in place to detect fake or duplicate Director Identification Numbers (DIN).

(d), (e) & (f) : As the term Shell Company has not been defined under the Companies Act, 2013 thus requisite information is not maintained. However details  of  Companies  observed  to  be  indulging  in  suspicious/potentially fraudulent  transactions  are  shared  by  Financial  Intelligence  Unit  (FIU) reports,  CEIB  (Central  Economic  Intelligence  Bureau)  references,  SLCC (State Level Co-ordination Committee) with the Ministry which serves as important  inputs  in  taking  up  Inquiry/  Inspection/  Investigation  under Sections 206(4), 206(5) and 210 of the Companies Act, 2013 respectively.

Further, in the matter of serious fraud, investigation is assigned to the Serious  Fraud  Investigation  Office  (SFIO)  under  Section  212  of  the Companies Act, 2013.

The findings of the Inquiry/Inspection/Investigation reports are also shared  with  enforcement  agencies  like  Enforcement  Directorate  (ED), Income Tax (IT) Department, and GST Authorities as the case may be, to enable further course of action against such companies and individuals associated with such companies.

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