‘Non-Existent’ Tata, RIL And SBI Firms Among Entities Struck Off By Government
By Team Legistify / 2017-11-22

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Eight firms linked to India’s largest conglomerate, the richest man and the biggest bank were among more than 2 lakh companies struck off by the government after its crackdown on suspected shell entities.

There’s a catch though: These companies no longer exist as they were merged with other group subsidiaries years ago. Among the deregistered entities are five from the Tata Group, one from Mukesh Ambani’s Reliance Industries Ltd. and two subsidiaries of the State Bank of India. The Ministry of Corporate Affairs’ July 28 notification said the 2.09 lakh firms were Struck off under Section 248 of the Companies Act, 2013. It gives the government power to deregister entities that didn’t commence business within a year of incorporation, or haven’t carried out any business for two straight years without classifying themselves as ‘dormant’.

Yet, what raises questions about the government’s record-keeping is that the list of deregistered companies includes two erstwhile subsidiaries of a public-sector bank and a Tata Group firm that has transformed into what is now called Tata Global Beverages Ltd. – a listed company and the world's second-largest maker of branded tea. If the approval to strike off companies was given without any verification, then the bureaucracy should be held accountable, TP Ostwal, chartered accountant and managing partner at TP Ostwal & Associates LLP, told BloombergQuint. It shows the bureaucracy is irresponsible because there’s no accountability,

Pic Courtesy- Bloombergquint


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