Lok Sabha Question No. 87 (UNSTARRED), answered on 2025-12-01
Subject: Shell Companies
Ministry: CORPORATE AFFAIRS
Asked by: Shri K C Venugopal

- (a) to

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 87 ANSWERED ON MONDAY, 01 st  December, 2025 AGRAHAYANA 10, 1947 (SAKA)

## Shell Companies

## 87. Shri K C Venugopal:

## Will the Minister of Corporate Affairs be pleased to state:

- (a) The  number  of  shell  companies  identified  and  struck  off  by  the Government from official records during the last five years;
- (b) Whether any such companies were found involved in  money laundering or tax evasion, if so, the details thereof;
- (c) The measures taken by the Government to prevent the reemergence of such entities under new names; and
- (d) Whether the Government proposes to strengthen inter-agency coordination  with  Enforcement  Directorate  (ED)  and  Income  Tax Department  for  monitoring  such  activities  and  if  so,  the  details thereof?

## ANSWER

THE MINISTER OF STATE OF THE MINISTRY OF CORPORATE AFFAIRS AND

MINISTRY OF ROAD TRANSPORT AND HIGHWAYS.

## (SHRI HARSH MALHOTRA)

- (c) :  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 hadundertaken  to  pay  at  the  time  of  incorporation  of  a  company and  a  declaration  to  this  effect  that  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.

The  Companies  Act,  2013  and  rules  made  thereunder  contain adequate  provisions  for  ensuring  accountability  and  transparency in the management of companies. It provides for accountability for management  of  companies  through  key  managerial  personnel, Board  of  directors  and  shareholders.  The  Act  &  Rules  require companies  to  maintain  books  of  account,  various  returns  and registers  etc  in  the  prescribed  form  and  keep  them  at  their registered offices.

Compliances with applicable accounting standards have also been mandated under the Act. The books of accounts are also required to  be  audited  by independent Chartered Accountants. In addition, the  Companies  are  required  to  file  various  documents,  copies  of resolutions, returns etc., with the Registrar.

The number  of companies  struck off under section 248 of Companies Act, 2013 during the last five years is as under :

| Financial year             | Total number of companies struck- off   |
|----------------------------|-----------------------------------------|
| 2021-2022                  | 62,275                                  |
| 2022-2023                  | 82,125                                  |
| 2023-2024                  | 16,465                                  |
| 2024-2025                  | 15,837                                  |
| 2025-2026 (till 16th July) | 8,648                                   |
| Total                      | 1,85,350                                |

- (d) Yes,  whenever  such  instances  are  reported,  the  same  are  shared with other government agencies for monitoring such activities.

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