A total of 2,42,376 companies are estimated to be “defunct companies” as on 10.12.2013. Giving this information in written reply to a question in the Rajya Sabha, Shri Sachin Pilot, Minister for Corporate Affairs, said that his Ministry had declared an Easy Exit Scheme twice : once in 2010 and then in 2011 to provide an opportunity for defunct companies to get their names struck off from the register of Registrar of Companies under Section 560 of the Companies Act. 35,174 number of companies availed the said scheme which was closed w. e. f. 30.04.2011. Shri Pilot further informed the House that the Ministry of Corporate Affairs has launched ‘Fast Track Exit Mode’ w .e. f. 03.07.2011 to provide an opportunity for defunct companies for getting their names struck off from the register of Registrar of Companies. A total of 11,623 companies have so far availed such scheme, which continues to operate.

Easy Exit Scheme enables defunct companies to be struck off the register; fast track exit continues as an expedited option. Easy exit mechanisms enable defunct companies to be removed from the Registrar of Companies' register via administrative name-striking provisions. The Ministry implemented Easy Exit Scheme iterations in 2010 and 2011 (the latter closing 30 April 2011) that were used by 35,174 companies, and thereafter launched a continuing Fast Track Exit Mode effective 3 July 2011, which has been availed by 11,623 companies.