More than 3.38 lakh companies canceled in the last two financial years: Government

NEW DELHI: More than 3.38 lakh Business they were removed from official records in the last two financial years for not submitting annual statements, according to the government.

The corporate affairs ministry has removed the names of these Business for their failure to file annual returns for two or more financial years continuously.

The state minister for corporate affairs, Anurag Singh Thakur, told Lok sabha on Monday that the ministry through its RoCs (Registrar of Companies) files prosecutions against Business that have not filed financial statements from time to time.

"During the financial year 2017-18 and 2018-19, RoCs had removed/struck off 3,38,963 Business ...for failing to file financial statements or annual returns for a continuous period of two or more financial years," he said in a written reply.

RoCs can remove the names of such Business from the official records in case they have not applied for dormant status under the Companies Act, 2013.

In a separate written response, Thakur said that, as far as the ministry is concerned, Section 182 of the Companies Law sets out how a company can contribute money to any political party or person for political purposes.

The section also establishes the way in which each company must disclose in its profit and loss account any amount that has contributed during a financial year, and the criminal provision in case of non-compliance by the company and its non-compliant officers, he said.

The response was to a query on whether the government believes that there is too much influence in politics of large Business in terms of financing parties as well as getting public contracts.