Over 1.9 Lakh Companies Struck Off for Non-Compliance Since 2020

In reply to an unstarred question in the Lok Sabha, the Ministry of Corporate Affairs placed detailed data on enforcement actions under the Companies Act, 2013 between 2019 and 2025. During this period, a total of 5,400+ companies were penalised annually on average, with penalties imposed across States and Union Territories for various non-compliances, as reflected in year-wise and region-wise annexures. Penalties imposed and amounts recovered steadily increased over time, with significant escalation from 2022–23 onwards, indicating intensified enforcement. Alongside monetary penalties, the Ministry carried out extensive strike-off drives under Sections 248(1) and 248(2), removing companies that failed to carry on business or did not file statutory returns. From 2020–21 to 2024–25, nearly 1.9 lakh companies were struck off nationwide, with large concentrations in major commercial States. The Government stated that these adjudication, compounding, inspection, and prosecution measures have strengthened accountability, improved corporate governance standards, and enhanced overall compliance behaviour among companies.

GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UN-STARRED QUESTION NO. 2352
ANSWERED ON Monday, December 15, 2025

Companies Penalised under the Companies Act, 2013

2352 Dr. Kalyan Vaijinathrao Kale:

Will the Minister of CORPORATE AFFAIRS be pleased to state :

a. the total number of companies penalised for non-compliance under various provisions of the Companies Act, 2013 between 2019-2025, year/State/UT-wise;

b. the total number of penalties imposed and amount recovered during this period;

c. the number of companies struck off from the register of companies for non-filing of statutory returns since 2020, year-wise; and

d. whether the Government has conducted any review of the impact of these enforcement measures on improving corporate governance and compliance levels, and if so, the details thereof?

ANSWER

Minister of State in the Ministry of Corporate Affairs; Minister of State in the Ministry of Road Transport and Highways.

(Shri Harsh Malhotra)

a. The year-wise and State/UT-wise details of the total number of companies penalised for non-compliance under various provisions of the Companies Act, 2013 between 2019 and 2025, are provided in Annexure I.

b. The total number of penalties imposed, and amount recovered from 2019 to 2025, are provided in Annexure II (A&B).

(c) This Ministry has carried out Strike-Off drives under section 248(1) of the Companies Act, 2013 for striking off such companies which were not carrying on any business or operation for a period of two immediately preceding financial years and had 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 declaration to this effect has not been filed within one hundred and eighty days of its incorporation under sub-section (1) of section 10(A) of the Act or was not carrying on any business or operations, as revealed after the physical verification carried out under section 12(9) of the Act. In addition, under Section 248(2) of the Companies Act, 2013 applications for voluntary strike off the company are also filed. Since 2020, year-wise details of companies struck off under section 248(1) and 248(2) which includes companies who have not filed statutory returns are given in Annexure-III.

(d): The Act provides a detailed framework to address both minor and major violations, including adherence to accounting and auditing standards, statutory filings, duties of the Board and its committees, responsibilities of independent directors and auditors, and mandatory disclosures. Enforcement actions – such as adjudication orders, compounding orders, and court convictions – have led to the penalisation of such companies for non-compliance. These measures have contributed to enhanced accountability, strengthened governance practices, and an overall improvement in corporate compliance behaviour.

*******

Annexure I as referred in Para `a’ of Lok Sabha Unstarred Question No. 2352 for 15.12.2025

Annexure II A -As referred in Para `b’ of Lok Sabha Unstarred Question No. 2352 for 15.12.2025

Annexure II B- As referred in Para `b’ of Lok Sabha Unstarred Question No. 2352 for 15.12.2025

Annexure III as referred in Para `c’ of Lok Sabha Unstarred Question No. 2352 for 15.12.2025