Defunct Companies

The Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh today informed the Lok Sabha that the total number of defunct companies, (those that have not filed their Annual Returns and Balance Sheets for the last three consecutive years or more) as per MCA records is 1,62,144.

Total number of defunct private limited /limited companies closed down under the Easy Exit Scheme, 2010 (EES, 2010) are 15,667.

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Nil, as there is no provision of Fee under the Easy Exit Scheme, 2010.

The Ministry has announced another scheme/ guidelines after closure of Easy Exit Scheme, 2010, for enabling quick and hassle free closure of companies, namely:

(i) Easy Exit Scheme, 2011 (w.e.f 01.01.2011 to 30.04.2011)

(ii) Guidelines for Fast Track Exit Mode (w.e.f 03.07.2011)

The minister was replying to a written question on the details regarding number of defunct companies upto the current year 2011; the number of defunct private limited/limited companies closed down under the Easy Exit Scheme, 2010 (EES,2010);the amount of revenue accrued by the Government in the current year; and the concrete steps taken by the Government in this regard.

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0 responses to “1.62 Lakh Companies not filed their Annual Returns and Balance Sheets for 3 consecutive Years or more”

  1. Rabi Narayan says:

    Dear Sir

    A Company which has prepared and audited inter alia Balance Sheet as on 31st March 2010 and Profit & Loss account for the year ended 31st March, 2010 and earlier years and the same were laid at the Second Annual General Meeting duly convened and held.

    Pursuant to Section 159/166/210/220, Balance Sheet(s) and Annual Return(s) for the aforesaid years should have been field with Registrar of Companies, within 30th days and 60 days respectively, from the date of respective Annual General Meeting.

    In view of the above, said Company has become a Defaulting Company by virtue of para 2(ii)(c) of Company Law Settlement Scheme (CLSS) 2011 – General Circular No.59/2011, as introduced by the Government of India, Ministry of Corporate Affairs, which has made default in filing of documents on the due date(s) specified under Companies Act, 1956, and rules made there under.

    Further, pursuant to para 2(iii) of CLSS 2011, any defaulting company is permitted to file belated documents, which were due for filing till 30.06.2011, in accordance with the provisions of the said scheme

    Para 2 of the said scheme gives opportunity to the defaulting company to enable them to make their default good by filing such belated documents and to become a regular compliant in future, by condoning the delay in filing documents with Registrar, granting immunity from prosecution and charging additional fee of 25 percent of actual additional fee payable for filing belated documents under the Companies Act, 1956 and the rules made there under

    However, to our shock and surprise while uploading pending annual filing documents, we have been asked to pay full amount without giving the benefit of concession i.e, charging 100 percent of actual additional fee payable for filing belated documents, [as against charging additional fee of 25 percent of actual additional fee payable for filing belated documents under the Companies Act, 1956 and the rules made there under] which is against natural justice and principle of equity.

    Though we have raised a compliant we could not get satisfactory answer. Can any one be help.

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