The Ministry of Corporate Affairs has deregistered more than
100,000 companies (constituting around 6% of total registered
companies in India) in a move to eradicate tax evasion / money
laundering / siphoning off funds and the culture of creating paper
/ shell / dormant companies just to divert attention of tax
authorities and cheating minority shareholders.
More than 54,000 of these companies found to be non-functional
and dormant for years were from eight States and two Union
territories. The highest number of such companies was from Delhi
and NCR (more than 22,000).
The government has been announcing such drives in the past too.
This time, however, the scale of clean up has been
unprecedented.
