Question : CODS-2018

(a) whether the Government proposes Condonation of Delay Scheme to give relief for disqualified directors;
(b) if so, the details and its implementation status thereof;
(c) whether the scheme is not open for directors of struck-off companies and if so, the details thereof;
(d) whether the Government has de-activated the Director Identification Number of disqualified directors, if so, the details thereof and the reasons therefor;
(e) whether there were concerns that many directors of genuine companies have also been disqualified and some individuals moved courts against their disqualification; and
(f) if so, the details thereof and present status in this regard?

MINISTER OF STATE FOR LAW AND (SHRI P. P. CHAUDHARY)
JUSTICE AND CORPORATE AFFAIRS

(a) : There is no such proposal under consideration by the Government.
(b): Does not arise.
(c): Government had announced Condonation of Delay Scheme (CoDS), 2018 effective from 01.01.2018 to 01.05.2018 for the defaulting companies to regularize their pending statutory returns. Accordingly, a total of 13,993 number of companies have availed of the CODS to become compliant companies and approximately 30,000 such disqualified directors have been regularized. This scheme was not applicable to the directors of already struck off companies unless they seek restoration under Section 252 of the Act by filing petition before the National Company Law Tribunal.
(d): During the financial year 2017-18 and as of now the Government has identified 3,09,619 directors as disqualified u/s 164(2)(a) read with Section 167(1) of the Companies Act, 2013 for non-filing of Financial Statements or Annual Returns for a continuous period of immediately preceding 3(three) financial years (2013-14, 2014-15 & 2015-16). Out of the above mentioned disqualified directors, 2,10,116 number of disqualified directors were directors on the Board of 2, 26, 166 struck off companies.
(e)& (f): A total of 2,459 number of Petitions were filed/moved before various High Courts for challenging inter alia action of the Government for identifying disqualification of the Directors as stated above as well as action on striking off names of companies. Out of this 628 cases are disposed of and rest of the cases are pending for adjudication.
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