80,000 companies in northern India are "defaulters" :MCA | business | Hindustan Times
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80,000 companies in northern India are "defaulters" :MCA

business Updated: Jul 09, 2011 15:24 IST

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Asserting that Companies that have not filed annual returns and balance sheet to ministry of corporate affairs (MCA) for past five years have been put on notice, a senior official of MCA on Saturday said there were 80,000 such companies in Northern India.

"About 80000 defaulters (defaulting companies) are there in northern India. There are various type of defaulters and most of them are defaulters due to failure to submit annual statement and balance sheets of the companies. But we taking strict action now", the ministry's regional director, northern region, B K Bansal told reporters.

"These companies were filing only even-based information with the MCA as per their convenience and not filing annual returns. We have sent them notices in past two months and have now blocked them", Bansal said.

He further said that MCA has taken steps for compliance management by the companies to ensure they file their annual returns and balance sheets duly audited in time.

Companies that have failed to file annual returns with MCA for past five years have been barred from filing any further documents with regard to benefits, he said.

"To make the move effective, ministry has also informed the banks associated with defaulting companies", Bansal said.

It has been decided that no request, whether oral or in writing or through e-forms, for recording any even-based information/changes shall be accepted by the Registrar of Companies (ROC) from such defaulting companies unless they file their updated Balance sheet and profit and loss accounts and annual returns with ROC, he said.

This is in order to ensure Corporate governance and proper compliance of provisions of Companies Act, 1956.