Number of defunct cos rose by 34% to 2.35 lakh last year

The number of defunct companies in the country rose by nearly 34 per cent to 2.35 lakh in the year 2012, the Parliament was informed today. In 2010, the number of defunct companies stood at 1.75 lakh. The figure increased to 2.20 lakh in 2011 and rose to 2.35 lakh in 2012. The data was provided by Corporate Affairs Minister Sachin Pilot in a written reply to the Lok Sabha.

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Besides, the data showed that as many as 19,193 defunct firms have availed the 'Fast Track Exit Mode' to strike off their names from the register of companies, since 2011. In the current year, 8,830 defunct firms have used the mechanism to de-register till July-end.

The 'Fast Track Exit Mode' was launched in July 2011, to provide an opportunity for defunct companies for getting their names struck off from the register of companies, to facilitate the exit of such firms without getting into the process of winding up, Pilot informed the house.

In addition, the Minister said that new Companies Bill recently passed by the Parliament has introduced a new concept of 'dormant companies'. "Such companies which do not have significant accounting transactions are permitted to obtain the status of a dormant company," he added.

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