Government Announces Amnesty For Cos Not Filling Returns, Government Will Action Against Companies Not Filling Returns, Legal Action Against Companies Not Filling Returns

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SME Times News Bureau | 29 May, 2010
Companies which have not been filing statutory documents with the Registrar of Companies (ROC) in time will be spared from legal action if they file the necessary documents under an amnesty scheme, the corporate affairs ministry said Friday.

"The Ministry has introduced a Scheme namely, 'Company Law Settlement Scheme, 2010,' for condoning the delay in filing documents with the registrar, granting immunity from prosecution and charging additional fee of 25 percent of actual additional fee payable," said a ministry statement.

The scheme will be in operation from May 30 to Aug 31.

According to information provided by Corporate Affairs Minister Salman Khurshid in the Lok Sabha earlier this month, as many as 370,196 companies did not file their balance sheets with the ROC in 2008-09 while 371,110 firms did not furnish their annual returns.

In the year before, their number stood at 303,230 and 307,236, respectively, the minister had informed the lower house of Parliament.

"After granting the immunity, the registrar concerned shall withdraw the prosecution pending, if any, before the concerned court," said the statement.

However, if the companies fail to avail the scheme and still do not file the required documents, the registrar of companies will take necessary legal action.

The ministry also floated another scheme for enabling shut down companies to get their names struck off the records of the ROC.

The "Easy Exit" scheme does not cover firms against which authorities have initiated any prosecution.

"Any defunct company desirous of getting its name struck off the register shall make an application without fee on the ministry portal," said a ministry statement.

This scheme too will be operational from May 30 to Aug 31.