'Fraudulent Company' not defined in Companies Act, 2013: Corporate affairs ministry

The Union Ministry of Corporate Affairs has informed the Parliament that the term 'Fraudulent Company' is not defined in the Companies Act, 2013.

The Union Ministry of Corporate Affairs has informed the Parliament that the term 'Fraudulent Company' is not defined in the Companies Act, 2013. "The term 'Fraudulent Company' is not defined in the Companies Act, 2013. However, the Ministry of Corporate Affairs (MCA) through the Registrar of Companies (ROC) CRC at Manesar registers new companies by following due process of law," read a statement.

This was stated by Anurag Singh Thakur, Minister of State for Finance and Corporate Affairs, in a written reply in Rajya Sabha on Tuesday. He further said that in order to simplify the process of registration of new companies, the ministry had taken various steps such as SPICe form was introduced to reduce the procedures, time, and cost required for incorporation of a company to great extent.

Since February 23, 2020, the SPICe form has been replaced by a new generation integrated incorporation form christened SPICe+ web form which offers 10 services by three central government ministries, the Maharashtra state government, and six public and private sector banks, thereby reducing the number of procedures required to start businesses in India. The ministry has been implementing a holistic end-to-end e-governance project named 'MCA21' for discharging its statutory functions since March 2006 to bring transparency, speed, and efficiency in the functioning of the government. Divulging more details, Thakur said, the ministry is aware of the corporate frauds reported in the last five years. Based on the complaints, investigations have been ordered from time to time against the companies which were allegedly involved in fraud and assigned to the Serious Fraud Investigation Office (SFIO) and Regional Directors (RDs), he said. (ANI)

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)