As many as 2,09,032 firms have been “struck off” from the Register of Companies, the Centre said on Tuesday. These companies will not be able to use their bank accounts till they are deemed “active” under the Companies Act and by an order of the National Company Law Tribunal, the Finance Ministry said.
Section 248 of the legislation gives the registrar the power to “strike off” a company if they have they have “reasonable cause” for it. The ministry’s order makes the directors and authorised signatories of these companies “ex directors or ex-authorised signatories”.
“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,” the Centre said in a statement.
Banks have also been asked to be more diligent while dealing with firms in general. Those that do not comply with “mandatory statutory obligations to file vital information” so the data is available to stakeholders should be looked into with suspicion.