Question : Closure of Bogus Companies

(a) whether there is an increase in the closure of bogus private limited companies especially those who had barely done business in the previous years but only taking loans and giving advances and creating money entries and if so, the details thereof;

(b) whether the Government has prepared any action plan to monitor and curb such bogus companies; and

(c) if so, the details thereof and if not, the reasons therefor?

Answer given by the minister

THE MINISTER OF STATE IN THE (SHRI ARJUN RAM MEGHWAL)
MINISTRY OF CORPORATE AFFAIRS

(a) to (c): The term Bogus Company is not defined under the Companies Act. However, the Registrars of Companies (ROCs) have removed 1,62,618 companies from the register of companies as of 12.07.2017 after following the due process under Section 248 of the Companies Act, 2013 as detailed in Annexure.
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