Daijiworld Media Network - New Delhi

New Delhi, Dec 1: The government has struck off 1,85,350 companies over the last five years for remaining inactive and failing to conduct business operations, Minister of State for Corporate Affairs Harsh Malhotra informed the Lok Sabha on Monday. The action, carried out up to July 16, 2025, is part of an ongoing effort to weed out non-operational entities and improve corporate transparency.

In the current financial year (FY26), 8,648 such companies have already been removed from the official registry under Section 248 of the Companies Act, 2013. Malhotra said the Ministry periodically undertakes strike-off drives to eliminate firms that have neither conducted business for two consecutive financial years nor applied for dormant company status.

He added that companies opting for voluntary removal under Section 248(2) — after clearing all liabilities — are also struck off following due statutory process.

Highlighting safeguards in the Companies Act, Malhotra noted that the law contains strong provisions to ensure accountability within corporate management structures, covering directors, key managerial personnel and shareholders.

Responding to a query on the government’s coordination with agencies such as the Enforcement Directorate (ED) and the Income Tax Department in tackling money laundering and tax evasion, the minister affirmed that relevant cases are routinely shared with concerned authorities for further monitoring and action.

The government also disclosed that 87 illegal digital lending apps have been blocked by the Ministry of Electronics and Information Technology (MeitY) under Section 69A of the IT Act, 2000. Malhotra said inquiries, inspections and investigations under the Companies Act continue to be initiated against entities engaged in online lending through such unlawful platforms.