Finance Ministry Restricts Operation of Bank Accounts of Two Lakh ‘Struck Off’ Companies

New Delhi, August 5: The Finance Ministry has ordered banks to restrict the operation of bank accounts of over two lakh companies that have been struck off the government’s list of companies. These companies were falling within the ambit of Section 248 of the Companies Act and cease to exist after the government struck them off.

“Government has stepped up decisive action against companies falling within the ambit of Section 248 of the Companies Act. The names of 2,09,032 companies have been struck off from the Register of Companies under Section 248 (5) of the Act,” a Finance Ministry release said.

“The existing Directors and Authorized Signatories of such struck off companies will now become ex Directors or ex Authorized Signatories. These individuals will therefore not be able to operate bank accounts of such companies till such companies are legally restored under Section 252 of the Companies Act by an order of the National Company Law Tribunal. The restoration, as and when it happens shall be reflected by change in the status of the company from ‘Struck off’ to ‘Active’,” it added.

The Finance Ministry release further said that all the banks are advised to put restrictions on such bank accounts.

“Since such ‘Struck off`’ companies have ceased to exist, action has been initiated to restrict the operation of Bank accounts of such companies. The Department of Financial Services has, through the Indian Banks Association, advised all Banks that they should take immediate steps to put restrictions on bank accounts of such struck off companies. A list of such companies, Registrar of Companies wise, has been published on the website of the Ministry of Corporate Affairs,” it added.

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