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Government of India stops bank accounts of more than 2 lakh companies

Sep 6th, 2017 9:48 am | By | Category: LATEST NEWS

The government of India has taken strong action against companies violating the Companies Act. 2,09,032 companies have been removed from the register of companies under section 248 (5) of the government order. The existing directors and their authorized signatories of such companies have now become former Directors or former authorized signatory. So these people can no longer operate the bank accounts of these companies. Now legal action is needed to restart the company. These companies will be shown ‘active’ in place of ‘closed’ whenever they are restarted.

In this context, action has been taken to curb the operation of bank accounts of such companies. Financial Services Department of the Ministry of Finance has advised all banks through the Indian Banks’ Association to take immediate steps to ban the bank accounts of 2,09,032 companies that have been closed. The list of such companies has been published on the official website.

Banks have also been advised by the Finance Ministry that they should be especially careful to do business with all the companies. Any company present in the ‘active’ form on the website of the Corporate Affairs Ministry, who does not show the annual return of particular assets related to their respective financial statements or loans, will be seen in suspicion in the first sight and it will be considered The company will be depriving its investors and the general public of important information and information.


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