Government's Crackdown on Non-Compliant Companies: Over Rs 55 Crore in Penalties Imposed

The corporate landscape is facing a strict regulatory environment, with the government imposing penalties amounting to over Rs 55 crore on 703 companies for failing to adhere to the Companies Law in the first nine months of the ongoing fiscal year.

Minister of State for Corporate Affairs Harsh Malhotra, in a written reply to the Lok Sabha, revealed the enforcement actions but noted no discernible increase in non-compliance with the Companies Act, 2013. The penalties on the companies during the specified period amounted to just over Rs 55.49 crore.

Additionally, over the last six years, official records indicate that 2,03,107 companies were struck off, with more than half removed due to provisions under Section 248. The ministry, employing Red Flag Indicators and an analytical system for compliance monitoring, continues to advocate for financial accountability.