For submitting probe reports in 100-130 cases, which have been pending for more than three years, the Ministry of Corporate Affairs (MCA) has set a March-end deadline, as per the officials.
The directive to regional directors and registrars of companies (RoCs) has the motive to improve corporate governance and ease the regulatory processes while furnishing a conducive business environment.
As a policy decision, 100-130 cases are pending with MCA for investigation, as the last three years are required to submit the reports by March.
The investigations comprise a range of corporate offences along with alleged fraudulent activities, mismanagement or non-compliance with statutory obligations.
The Economic Survey 2025 emphasizes the requirement for deregulation and enhancing the ease of doing business to draw investment and foster entrepreneurship.
FM Nirmala Sitharaman in her Budget speech, which came a day after the Economic Survey, said, “Our Government will now bring up the Jan Vishwas Bill 2.0 to decriminalise more than 100 provisions in various laws.”
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As per the officials of the western region, which comprises the financial capital of Mumbai and neighbouring Pune, it has the highest number of these pending cases and the north the least.
The ministry oversees corporate regulation via a network of regional directors (RDs) and RoCs. The country is separated into 7 regions, each managed by an RD who supervises the RoCs — 22 of them — in their jurisdiction.
The motive of the ministry is to keep the corporate governance standards and support investor confidence by addressing these cases.
When the Ministry of Corporate Affairs (MCA) initiates an investigation, it is managed by the respective Regional Director (RD) and Registrar of Companies (RoC) based on the company’s registered location. For example, a company registered in Mumbai falls under the jurisdiction of the Western Region’s RD and the RoC Mumbai.
Investigations and regulatory oversight are executed effectively, and the division of regions ensures.
To ease the regulatory framework and improve the ease of doing business in India, the ministry has opted for various steps, along with the withdrawal of an influential number of cases under the Companies Act, 2013.
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The ministry has withdrawn a total of 14,247 prosecutions that were pending in various courts. Continuing previous efforts, it approved the withdrawal of an additional 7,338 prosecutions as part of the Special Arrears Clearance Drive-II in 2023. This initiative aims to decriminalize compoundable offences and has resulted in a 21.86 per cent reduction in cases pursued by the Centre.
In October 2023, the Ministry revised the Companies (Incorporation) Rules, 2014, eliminating the levying of costs while processing applications for shifting the registered offices.
The proceeds have the motive to ease the process and lessen the compliance loads on companies.
The Ministry, via the Companies (Amendment) Act 2015, has furnished exemptions to private companies by eliminating the need for the minimum paid-up capital. The same amendment was objected to motivate entrepreneurship and ease the incorporation of new businesses.
Source: Moneycontrol
