Give them a chance to the disqualified directors and struck off companies.

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Respected Honorable Prime Minister Narendra Modiji,

Finance Minister Arun Jaitleyji,

Corporate Affairs Minister PP Chaudaryji,

As you are aware of MCA has stricken off the name of companies under Section 248 (5) of the Act. around 2 lakhs and around 3 lakhs DINs cancelled (Disqualified us. 164(2)) by the MCA and many of them are haven’t received notices for cancellation due to various reasons, all the operations of the companies are stopped because of seizing the bank accounts of the companies, and they are unable to pay salaries to their employees and the employees are suffering by retrenchment of their jobs in the private sector, this may become huge loss to the companies, in the production and manufacturing sector and which would affect the economy of the nation. Reduction of industrial development would adversely affect the GDP of the nation. Many active companies in the rural areas and semi-urban areas closing their companies voluntarily and starting partnership forms and proprietary firms this results to many young professionals like CS, CA, ICWAs are losing their works, It’s very hard to survive in the current situation.

The Directors, who are declared as disqualified  (us 164(2)) to act as directors because of strike off of company under section 248 are KMP or key Directors of some other companies which comply all the statutory provisions and made timely disclosures. Disqualifying them in those companies also would affect the companies who are not guilt.  The main intention of any statute is to punish the guilty and set free the innocent.  Which was totally defeated by the actions of MCA. As the Directors who have been disqualified are the key persons of the companies which comply all the provisions and because of this disqualification, those companies would be affected and would result in de-industrialisation.

It was observed that there was much awareness with regard to Income Tax compared to the MCA and this might be one of the main causes for delay in filing of forms in respective stages, and many companies are filling their income tax returns  but lack of awareness and proper guidance they are not filling to ROC returns which led to striking the names of the companies in the portal. Much awareness needs to be brought among the Urban and Rural Entrepreneurs. In 2014- there was a scheme called CLSS Scheme (Company law Settlement Scheme) in wide circular no: 34/2014 dated 12/08/2014, we would like to plea for a scheme which replicates this scheme (If possible).

Filing the appeal in NCLT is much time taking the process and it also expensive for rural companies, so we would request MCA authorities to give some more time for filing the Annual returns for getting back the status of the companies and activating the DIN no of the directors.