The Ministry of Corporate Affairs (MCA) deactivated 19,40,313 Director Identification Numbers (DINs) in the MCA21 Database due to non-filing of Know Your Client  (KYC), as on 28.11.2019. This was stated by Shri Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs, in a written reply to a question in Rajya Sabha today.

The Minister further stated that the MCA21 Database does not contain information regarding employment details of directors/DIN holders.

Informing the House, the Minister stated that the terms “Ghost Directors” and “Shell Companies” are not defined in the Companies Act, 2013. However, during the Financial Year 2017-18 and 2018-19, Registrar of Companies (ROCs) had struck off 3,38,963 companies u/s 248 of the Companies Act, 2013 for failing to file Financial Statements or Annual Returns and total number of 4,24,454 directors were disqualified  under the provisions of section 164(2)(a) read with Section 167(1) of the Companies Act, 2013.

DIN KYC compliance: mass deactivation of director identification numbers for non filing, database lacks employment records. MCA deactivated numerous Director Identification Numbers for non-filing of KYC in the MCA21 database and clarified that MCA21 lacks directors' employment information. The statement notes that 'Ghost Directors' and 'Shell Companies' are not defined in the Companies Act, 2013, and that Registrar of Companies enforcement has included striking off companies for failure to file financial statements or annual returns and disqualifying directors under the Act's disqualification provisions.