Over 400 companies struck down in J&K for failing to fill business status

SRINAGAR — Over 400 companies have been struck down in Jammu and Kashmir by the Registrar of Companies for failing to file their business status, an official said according to IANS report.

The report said that the Registrar of Companies exercised powers under Section 10A of the Companies Act 2013 to strike off these companies as part of its on-going drive against bogus companies in the union territory.

“All the businesses that haven’t opened for business or submitted their reports to the registrar were struck off. According to a source in the know, a due procedure has been followed and an opportunity was given to the company to prove their businesses.

“The registrar of companies further got the bank accounts of all these companies frozen immediately through DFS and by writing to the banking association. These companies can’t use the bank accounts held in their names once frozen.”

“This exercise is believed to be a check on shell companies as the companies should be transparent in their businesses; either you function or take a dormant status as per relevant sections of company law,” the source added.