Government prepares to strike off registration of over 2 lakh companies

by | posted in: Company Incorporations, e-filing of MCA Returns, Corporate & Business Advisory Services, Corporate Updates, Economy, Business Updates, Corporate Affairs | 0
Defunct or Inactive Companies - Fast Track Exit Scheme / Strike off of companies under Companies Act, 2013
Defunct or Inactive Companies – Fast Track Exit Scheme / Strike off of companies under Companies Act, 2013

The government plans to cancel the registration of more than two lakh companies that have not been carrying out business for a considerable period of time, amid stepped up efforts to tackle the black money menace.

More than two lakh companies, spread across various states, have been served with show cause notices as they have not been carrying out any operation or business activity for a prolonged time.

The Corporate Affairs Ministry’s move also comes against the backdrop of overall efforts by the authorities to crack the whip on shell companies, suspected to be used for money laundering activities.

The Registrars of Companies (RoCs) in various states and union territories have issued notices to more than two lakh firms under the Companies Act, 2013, according to information available with the Ministry.

These notices have been issued under Section 248 of the Act, which is implemented by the Ministry. This section pertains to striking off names of companies on certain grounds.

With the issuance of notices, the companies concerned have to explain their position and if the responses are not satisfactory, then their names would be struck off by the Ministry.

Data showed that RoC Mumbai has issued notices to more than 71,000 companies while RoC Delhi has served notices to over 53,000 firms, among others.

As per the regulations, an RoC can seek explanation from a company if the latter has not commenced business within one year of getting incorporated under the Act.

Notice is also issued if a particular company has not been carrying out business for at least two continuous financial years and has not applied for dormant status.

Such entities are given a time of 30 days to submit objections if any.

The Ministry has power to remove or strike off the names of such entities from the “register of companies” if the response is not satisfactory.

Earlier this month, the Ministry had amended the Companies (Removal of Names of Companies from the Register of Companies) Rules.

There are more than 15 lakh registered companies in the country.

 

Vizag, 4 other cities lead the way under smart cities mission

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Visakhapatnam along with four other cities — Pune, Bhubaneshwar, Surat and Ahmedabad — is leading the progress made under the first round of the government’s flagship scheme.

Mission Director (Smart Cities) Sameer Sharma told BusinessLine, “We have reviewed the progress of Visakhapatnam under the smart cities mission with the consultants and CEO of the special purpose vehicle (SPV) formed. Under the project, development of footpaths will go for bidding by October 31; water supply for the city by September 30, sewerage also by September 30, etc.”

Visakhapatnam had ranked eighth in the first round of the smart cities challenge.

On the overall progress made, he added that all 20 cities in the first round have already formed SPVs and most have readied Production Management Contracts ( PMCs) also. “Projects across all these cities are expected to kick-start by December,” Sharma said at the sidelines of the 3rd BRICS Urbanisation Forum here.

In January this year, 20 winning cities which were announced under the first round covered only 12 States and Union Territories. The government had then decided to conduct a ‘fast-track competition’ to offer an opportunity to the highest ranked city in each of the unrepresented 23 States and UTs. In May this year, the Ministry of Urban Development had announced 13 more winners of the smart city tag under the fast-track round.

On the progress under this round, Sharma said, “Out of the 13 selected in the fast-track round, six cities, including Panaji, Chandigarh, Port Blair, Lucknow, have formed SPVs and remaining seven are in the last stage of formation of SPV and are expected to do so by the end of this month.”

Moreover, on Monday, the Centre will announce 27 more cities which will bag the smart city tag.

 

Funding plans

Meanwhile, the government is also pursuing a loan of $1 billion from Asian Development Bank and another $500 million from the World Bank to provide funds to the city SPVs, apart from Japanese International Cooperation Agency ($500 million), BRICS Bank ($ 500 million per city), AFD (€100-200 million).

“The funds from World Bank are expected to flow in 6 months. It will be in phases,” Sharma added.

Source :http://www.thehindubusinessline.com/todays-paper/tp-news/vizag-4-other-cities-lead-the-way-under-smart-cities-mission/article9108718.ece

ADB trims developing Asia growth forecast; India on track

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ADB today marginally cut economic growth projection for Asia and Pacific region for 2016, though India is likely to meet 7.4 per cent and 7.8 per cent growth forecast for this and the following year.

Asian Development Bank said it has cut its 2016 growth projection for developing economies in Asia and the Pacific to 5.6 per cent from earlier forecast of 5.7 per cent.

“South Asia, meanwhile is expected to be the fastest growing subregion, led by India, whose economy has shrugged off global headwinds and is on track to meet ADB’s March fiscal year 2016 (year to March 2017) projected growth target of 7.4 per cent, supported by brisk consumer spending and an uptick in the rural economy”, ADB said in a supplement to its Asian Development Outlook 2016 report.

“Although the Brexit vote has affected developing Asia’s currency and stock markets, its impact on the real economy in the short term is expected to be small,” said Shang-Jin Wei, ADB’s Chief Economist.

However, in light of the tepid growth prospects in the major industrial economies, policy makers should remain vigilant and be prepared to respond to external shocks to ensure growth in the region remains robust,” Wei said.

ADB said it now forecasts 2016 growth for the developing economies at 5.6 per cent, below its previous projection of 5.7 per cent. For 2017, growth is seen unchanged at 5.7 per cent.

Growth in 2016 and 2017 is led by South Asia, and India in particular, which continues to expand strongly, while China is on track to meet earlier growth projections, it said.

In Southeast Asia, growth projections for the subregion in the 2016 and 2017 remain unchanged at 4.5 per cent and 4.8 per cent, respectively with solid performances by most economies in the first half of 2016 driven by private consumption.

The exception was Vietnam where the economy came under pressure from a worsening drought that caused a contraction in the agriculture sector, it added.

ADB said growth in Asia and the Pacific’s developing economies for 2016 and 2017 will remain solid as firm performances from South Asia, East Asia and Southeast Asia help offset softness from the US economy, and near-term market shocks from the Brexit vote.

It has projected inflation for developing Asia at 2.8 per cent for 2016 and 3 per cent or 2017- a 0.3 percentage point rise for each year from the previous forecasts.

“The rise is largely due to a recovery in oil and food prices,” it added.

The Manila headquartered ADB is owned by 67 members – 48 from the region. In 2015, ADB assistance totalled $27.2 billion, including co-financing of $10.7 billion.

Source :
http://economictimes.indiatimes.com/articleshow/53263953.cms

RBI simplifies registration process for new NBFCs

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In order to make the registration process of new non-banking finance companies smoother and hassle-free, the Reserve Bank of India has revised the application form for registration of these companies and the checklist of documents to be submitted.

The number of documents to be submitted by NBFC applicants has been reduced from the existing set of 45 documents to seven to eight in the revised process, the central bank said in a statement.

The RBI said henceforth there would be two different types of applications for non-deposit taking NBFCs (NBFC-ND) based on sources of funds and customer interface.

The first type (Type-I) will be a NBFC-ND not accepting public funds/ not intending to accept public funds in the future and not having customer interface/ not intending to have customer interface in the future.

“Public funds” include funds raised either directly or indirectly through public deposits, commercial paper, debentures, inter-corporate deposits and bank finance but excludes funds raised through issue of instruments compulsorily convertible into equity shares within a period not exceeding 10 years from the date of issue.

“Customer interface” means interaction between the NBFC and its customers while carrying on its business.

The second type (Type-II) will be NBFC-ND accepting public funds/ intending to accept public funds in the future and/or having customer interface/intending to have customer interface in the future

Fast track mode

The RBI said processing of cases for Type-I of NBFC-ND applicants would be on fast track mode. As these companies will not have access to public funds and will not have customer interface, they will be subjected to less intensive scrutiny/ due diligence.

However, the certificate of registration issued to Type I – NBFC-ND companies will be conditional. These companies will be prohibited from accessing public funds and having customer interface, the RBI said.

In case Type-I companies intend to avail public funds or intend to have customer interface in the future, they are required to take approval from the Reserve Bank of India, Department of Non-Banking Regulation.

Source: http://www.thehindubusinessline.com/todays-paper/tp-money-banking/rbi-simplifies-registration-process-for-new-nbfcs/article8742967.ece

Tax grievances: IT dept launches ‘e-nivaran’ for speedy grievance redressal

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CBDTThe Income Tax department has launched a special electronic grievance redressal system called ‘e-nivaran’ in order to fast track taxpayer grievances and ensure early resolution of their complaints.

A separate and dedicated window for grievance redressal has been launched recently in the Income Tax Business Application (ITBA), the new smart electronic platform for the regular operations of the department.

The facility is called ‘e-nivaran’ (electronic solution) and acts to integrate all online and physical complaints gathered by the department at this platform which will be monitored by the Assessing Officer of the case upto the supervisory officers in a paperless environment.

The facility is called ‘e-nivaran’ (electronic solution) and acts to integrate all online and physical complaints gathered by the department at this platform which will be monitored by the Assessing Officer of the case up to the supervisory officers in a paperless environment.

“The new system is called unified grievance management system and is acronymed ‘e-nivaran’. The system not only records the origin of the grievance on the electronic platform it works on, but it also keeps tracking it till it reaches its logical conclusion for final resolution,” a senior IT official said.

The e-portal will also ensure that grievances related to any section or domain of the tax department are transferred quickly to the department concerned like that of refunds issue or any other IT matter concerning an assessee.

The decision to launch ‘e-nivaran’, the official said, was taken in view of Prime Minister Narendra Modi few months back asking the IT department to pull up its socks and ensure that taxpayers grievances are resolved in the shortest possible time.

Modi had also asked all such departments which have a public interface to reduce this time to one month from the existing two months time.

The Central Board of Direct Taxes (CBDT), the policy-making body of the department, has recently also created a new structure in the department to deal with these issues called the Taxpayer Services unit.

Allotting high priority to this issue, the CBDT had also brought a new mechanism where top officers of the department have been allotted a specific quota of complaints to monitor and track, from their origin to successful resolution.

Source: http://indianexpress.com/article/business/business-others/tax-grievances-it-dept-to-ensure-e-nivaran-2805360/

US, India to boost defence ties, fast-track co-production

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India and the US have ramped up their defence and strategic ties by agreeing to fast-track co-production ventures as their defence ministers held wide-ranging talks on regional and global security issues besides discussing the growing menace of terrorism.

Defence Minister Manohar Parrikar and his American counterpart Ashton Carter held one-and-a-half hour long closed door discussions yesterday during which the two leaders “reviewed the cooperation between our armed forces which have grown stronger”.

Parrikar said India and US share a strategic partnership that reflects their shared values and interests. Defence and security cooperation is a vital component of this partnership, he said.

Describing the Indo-US defence partnership as an anchor of global security, Carter said the Obama Administration is ready to further strengthen this relationship.

“The Indo-Asia-Pacific is one of the most consequential parts of the world for America’s future. And we welcome India’s rise as a security partner in a region where half of humanity lives, and half of the world’s economic activity takes place,” Carter told reporters at a joint news conference with the visiting Indian Defence Minister.

Carter informed Parrikar that the US has updated its policy on gas-turbine engine technology transfer to India to expand cooperation in production and design of sensitive jet engine components.

As a result of this policy update, Carter said that the US will be able to expand cooperation in production and design of sensitive jet engine components.

Carter and Parrikar look forward to US companies working with their Indian counterparts to submit transfer requests that will benefit from this updated policy, said a joint statement.

During the meeting, the two leaders discussed ways and means to move the ambitious Defence Technology and Trade Initiative (DTTI) forward.

Expressing satisfaction with DTTI progress to date, the two committed themselves to identifying additional projects for possible co-development and co-production of high technology items that meet the transformational intent of DTTI, the joint statement said.

This was the third meeting between the two leaders in less than six months.

Yesterday the two leaders stayed together for nine hours, including four hours abroad USS Eisenhower, a nuclear-powered aircraft carrier.

“Through our meetings today and expanded cooperation in the days to come, the US-India defence partnership will become an anchor of global security, as together, we work towards a common future, a common future between the United States and India that is destined,” Carter said.
“This is a relationship that will be critical in strengthening the Indo-Asia-Pacific security architecture, so that everyone there can continue to rise and prosper,” said the US Defence Secretary.

Carter said he and Parrikar discussed the progress that has been made towards cooperation on jet engines and aircraft carrier design and construction as well as opportunities to collaborate on additional projects of interest, which will also further Prime Minister Narendra Modi’s ‘Make in India’ policy.

Parrikar said their desire is to further collaborate in the higher-end technologies within the framework of DTTI.

“The assurance I have, and I am confident of that India is placed at a level which would ensure that red tapism is cut. I think this is the biggest take home one can get. We have got a very clear promise and we have been experiencing it that our issues are fast-tracked,” he told reporters.

Parrikar said some US companies have shown interest in setting up manufacturing base in India for fighter jets for which India has asked the Pentagon if there is any advance clearance system from their side.

“They (US) are very positive on that,” the Minister said adding that the US side has indicated that pre-approval could be considered on all such proposals coming from companies like Boeing and Lockheed.

As many as 17 new ideas for cooperation under the DTTI are also being discussed.

“We have identified many new areas for cooperative research and development, and both sides are committed to continue to exchange ideas in the search for additional projects for possible co-development and co-production that meet the spirit of DTTI,” he said.

Both sides said that progress has been made on the Defence Technology and Trade Initiative (DTTI) pathfinder projects which include the Raven mini Unmanned Aerial Vehicles (UAVs), “roll-on, roll-off” mission modules for C-130J aircraft, Mobile Electric Hybrid Power Sources (MEHPS) and Next Generation Protective Ensemble (NGPE) for soldiers.

The two leaders discussed range of regional security issues, including the threat posed by the Islamic State and entities such as Al-Qaeda and its affiliates, Lashkar-e-Taiba, Jaish-e-Mohammad, D Company, the Haqqani Network and other regional terror groups, according the joint statement.

Parrikar said in all his meetings in the US, terrorism was one of the key issues of discussions with American leadership.

“The issue of terrorism was a key topic discussion in all engagements Terrorism has become a global phenomenon and requires a comprehensive response. Terrorists of all shades and affiliations must be countered without any differentiation,” he told reporters.

Carter said terrorism of all kinds in South Asia has been and remains a serious problem. India, he said, has been attacked and is continuously threatened with attack from terrorists. However, India has ruled out any enhancement of its role

in the Middle East in view of the emergence of deadly ISIS in Syria and Libya.

Parrikar said there has been no change in India’s policy on participating only in UN approved peacekeeping missions.

But India is and has been sharing intelligence with the US on issues related to terrorism, he said.

Source: http://www.business-standard.com/article/pti-stories/us-india-to-boost-defence-ties-fast-track-co-production-115121100316_1.html