<h1>Government Strikes Off 382,875 Companies Under Companies Act Section 248(1) for Inactivity in 2020-21; Addresses Shell Companies Issue.</h1> The Registrar of Companies, under Special Drives, struck off 382,875 companies by the end of the financial year 2020-21, as per Section 248(1) of the Companies Act. The Union Minister of State for Corporate Affairs reported this in response to a Rajya Sabha query. The term 'Shell Company' lacks a formal definition in the Companies Act but generally refers to entities without active business operations, often used for illegal activities. The government has implemented red flag indicators to identify such companies and has removed them from the register if inactive for two consecutive years without applying for dormant status.