Lok Sabha Question No. 404 (UNSTARRED), answered on 2026-02-02
Subject: Shell Companies
Ministry: CORPORATE AFFAIRS
Asked by: Shri Neeraj Maurya

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

## LOK SABHA

UNSTARRED QUESTION NO. 404

ANSWERED ON MONDAY, FEBRUARY 02, 2026

MAGHA 13, 1947 (SAKA)

## SHELL COMPANIES

## QUESTION

404. Shri Neeraj Maurya:

Will the Minister of CORPORATE AFFAIRS

be pleased to state:

- (a) whether the Government is contemplating to lay down any clear statutory definition of shell companies or accord legal status to these companies under the Companies Act, 2013;
- (b) if so, the details thereof;
- (c) the concrete steps taken so far by the Government to strengthen data-based monitoring mechanism and compliance to bring a check on illegal activities like money laundering and tax evasion by shell companies;
- (d)  the  number  of  entities  linked  with  illegal  online  lending  apps brought  under  regulatory  scrutiny  so  far  and  the  outcome  the Government is expecting from these investigations; and
- (e) the number of dormant/shell companies identified under Section 248 of the Companies Act in the districts at Bareilly, Badaun and Shahjahanpur in Uttar Pradesh in the last five years along with the details of the actions taken against them?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF CORPORATE AFAIRS AND MINISTER OF STATE IN THE MINISTRY OF ROAD, TRANSPORT

AND HIGHWAYS

[SHRI HARSH MALHOTRA]

- (a) to (b): No such proposal is under consideration.
- (c): The Central Government orders Inquiries, Inspections, Investigations as per the relevant provisions of the Companies Act, 2013  based  on  complaints,  references  and  information  regarding

serious  violations  and  other  non-compliances.  Based  on  findings thereof, instructions are issued for taking action, including striking off of companies under section 248 (1) of the Companies Act, 2013.

(d): Based on the findings of inquiry, inspection of books of accounts and  investigation  under  the  Companies  Act,  2013,  action  is  taken from time to time against companies, including the ones indulged in online lending activities through Loan Apps.

Ministry of Electronics and  Information Technology  (MeitY)  is empowered to issue blocking directions to block the Information for public access under section 69A of the Information Technology Act 2000. So far, after following the due process, MeitY has blocked a total of 87 illegal loan lending applications under section 69A of the Information Technology Act 2000.

(e):  'Dormant  Company'  is  referred  to  under  Section  455  of  the Companies Act, 2013 (the Act) as (i) any company formed for a future project  or  to  hold  an  asset  or  intellectual  property  and  has  no significant accounting transaction or (ii) any inactive company which has  not  been  carrying  business  or  operation,  or  has  not  made significant  accounting  transactions  during  the  last  two  financial years, or has not filed financial statements and annual returns during last two financial years.

As  the  term  Shell  Company  has  not  been  defined  under  the Companies Act, 2013 thus requisite information is not maintained.

The number of companies struck off u/s 248(1) of the Companies Act, 2013 for the five years in the district of Bareilly, Badaun, Shahjahanpur are as under: -

| Financial   | Name of District   | Name of District   | Name of District   |
|-------------|--------------------|--------------------|--------------------|
| Year        | Bareilly           | Badaun             | Shahjahanpur       |
|             | 248(1)             | 248(1)             | 248(1)             |
| -           | -                  | -                  | 2020-21            |
| -           | -                  | -                  | 2021-22            |
| 195         | 17                 | 38                 | 2022-23            |
| -           | -                  | -                  | 2023-24            |
| -           | -                  | -                  | 2024-25            |
| -           | -                  | -                  | 2025-till          |
| Total       | 195                | 17 38              |                    |

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