Press Information Bureau

Government of India

Ministry of Corporate Affairs

19-March-2012 17:29 IST

Blacklisted Companies

As per general circular No. 33/2011 dated 01/06/2011, the Government has marked 1,55,394 companies as “Defaulting Companies” for failure to file Balance Sheet or Annual Return for any of the financial years, 2006-07, 2007-08, 2008-09 and 2009-10 with the Registrar of Companies as required under Section 220 and/or Section 159 of the Companies Act, 1956. In order to ensure Corporate Governance and proper compliances of provisions of Companies Act, 1956, these companies are not allowed to file certain event based document with the Registrar of Companies.

The number of defaulting companies has been reduced from 1,55,394 (as on 04/07/2011) to 78,529 (as on 14/03/2012).

This information was given by the the Minister of State in the Ministry of Corporate Affairs Shri R.P.N. Singh in Rajya Sabha today in reply to a written question whether Government has blacklisted 1,55,392 companies, one-fifth of the total, for violating norms and whether those companies are not allowed to borrow from banks and financial institutions and also not allowed to enter into new contractual agreements with various parties; the details thereof; and whether these measures are aimed at getting companies to make available balance sheet and related documents thereby improving corporate governance.

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Defaulting companies designation restricts filing of event documents to enforce Companies Act compliance and corporate governance. The Government designated numerous companies as Defaulting Companies for failure to file balance sheets or annual returns as required under the Companies Act, 1956, and imposed restrictions preventing those companies from filing certain event-based documents with the Registrar of Companies to ensure compliance and strengthen corporate governance; the number of defaulting companies declined materially during the reported period.