Two lakh companies struck off, bank accounts inoperable: Govt
The government said that since such ‘Struck off`’ companies have ceased to exist, action has been initiated to restrict the operation of bank accounts of such companies.
- Bank account operations of over two lakh companies that had been ‘struck off’ from the Register of Companies have now been restricted.
- The existing directors and authorized signatories of such companies will become ex-authorised signatories.
- Accounts of these companies will not operator till they are legally restored by NCLT.
The Finance Ministry on Tuesday said that it has stepped up action against companies falling within ambit of Section 248 of the Companies Act.
It said, "The names of 2,09,032 companies have been struck off from the Register of Companies under Section 248 (5) of the Act," adding, "The existing Directors and Authorized Signatories of such struck off companies will now become ex Directors or ex Authorized Signatories. These individuals will therefore not be able to operate bank accounts of such companies till such companies are legally restored under Section 252 of the Companies Act by an order of the National Company Law Tribunal."
The names of these companies have been struck off for not filing returns on time. Nearly 2.97 lakh companies were served with notices who failed to respond to these show-cause notices, a report by Times of India said on Monday.
The government further added the current signatories of these companies will now become ex-signatories.
Since such ‘Struck off`’ companies have ceased to exist, action has been initiated to restrict the operation of Bank accounts of such companies, the ministry said.
"The Department of Financial Services has, through the Indian Banks Association, advised all Banks that they should take immediate steps to put restrictions on bank accounts of such struck off companies," it said.