Ministry of Corporate Affairs to take back 7,338 cases under companies law

The Ministry of Corporate Affairs decided to withdraw 7,338 lawsuits under the Companies Law pending before various courts in the context of enhancing the ease of doing business.

Prosecutions for serious non-contractual offenses such as fraud, fraud and accepting deposits will not be considered.

In 2017, the ministry withdrew 14,247 trials.

The company said in a statement on Friday that a further 7,338 cases pending in various courts will be withdrawn under Special Arrears Clearance Drive-II in order to enhance the ease of doing business and decriminalize aggravable offenses under the Companies Act 2013.

It added that the withdrawal “will lead to a decrease of 21.86 percent in pending prosecutions pursued by the central government.”

The Ministry formed a committee to conduct a comprehensive review of all pending cases.

“Long-pending trials for collectible offenses have been slated for withdrawal. Trials for serious non-contractable offenses such as fraud, fraud, accepting deposits, pending charges, etc. have not been considered.

“This crucial step will remove the shackles of the courts as well as boost the growth of India’s corporate sector, while maintaining a healthy corporate governance framework,” the statement read.