Minister: Over 1.85 lakh companies closed down in the last 5 years
New Delhi: The government has identified and struck off 1,85,350 companies that were not carrying on any business or operations in the last five years (till July 16, 2025), Parliament was informed on Monday.
In the current financial year (FY26), 8,648 such companies have been struck off under Section 248 of the Companies Act, 2013, Minister of State for Corporate Affairs Harsh Malhotra told the Lok Sabha.
He said, “From time to time, this Ministry conducts winding-up operations under Section 248(1) of the Companies Act, 2013, for companies that have not been carrying on any business or operations for the immediately preceding two financial years and have not applied for dormant company status under Section 455 of the Act within that period…” Furthermore, under Section 248(2) of the Companies Act, 2013, companies that voluntarily seek to be struck off from the Registrar of Companies after liquidating all their liabilities are struck off following due process.
The Companies Act, 2013 and the rules made thereunder contain substantial provisions to ensure accountability and transparency in the management of companies. It provides for accountability for the management of companies through key managerial staff, the Board of Directors, and shareholders.
On whether the government proposes to strengthen inter-agency coordination with the Enforcement Directorate (ED) and the Income Tax Department to monitor companies found involved in money laundering or tax evasion, the minister said: “Yes, whenever such cases are reported, they are shared with other government agencies to monitor such activities.”
The government also stated that 87 illegal loan applications have been blocked after following due process.
Malhotra said, “So far, after following due process, MeitY has blocked a total of 87 illegal loan applications under Section 69A of the Information Technology Act, 2000.”
He said that regulatory action for inquiry, scrutiny of accounts, and investigation is taken from time to time against companies, including those providing online loans through loan apps, under the Companies Act, 2013.
