The Finance Ministry has canceled accounts and registrations of about 2,09,032 companies on Tuesday. The government has taken this step under sections 248 (5) of the Companies Act. Existing Directors and Authorized Signatories of these companies have now become X Directors and X Arthritised Signatures. Since this decision all rights of the directors have been abolished.
After the order of the National Company Law Tribunal (NCLT), people under the Section 252 of the Companies Act can not operate bank accounts of these companies till they get legal permission. The government has stated in its statement that the accounts of these two lakh companies have been removed from the list of the Register of Companies. The list of companies which have been banned is available on the website of the Corporate Ministry. The Department of Financial Services has advised all banks through the Indian Banks' Association (IBA) to stop the accounts of Shell companies from immediate effect by the Finance Ministry.
After the order of the National Company Law Tribunal (NCLT), people under the Section 252 of the Companies Act can not operate bank accounts of these companies till they get legal permission. The government has stated in its statement that the accounts of these two lakh companies have been removed from the list of the Register of Companies. The list of companies which have been banned is available on the website of the Corporate Ministry. The Department of Financial Services has advised all banks through the Indian Banks' Association (IBA) to stop the accounts of Shell companies from immediate effect by the Finance Ministry.
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