Over 1.3 lakh new companies registered in FY21

New Delhi, March 23 (SocialNews.XYZ) A total of 1,38,051 new companies have been registered in the current financial year as of February, according to data from the Ministry of Corporate Affairs.

In a written reply to the Lok Sabha, the Minister of State for Corporate Affairs Anurag Thakur also said that 10,113 companies have been struck off during April 2020 to February 2021.

The number of companies registered in FY21 gains significance as business activities in the year have been severely affected by the pandemic and the nationwide lockdown.

Another data provided by the minister in the Lok Sabha showed that National Company Law Tribunals (NCLT) across the country admitted a total of 283 companies into insolvency amid the pandemic after the announcement of the nationwide lockdown last year.

He said that during the period between April 1, 2020 and December 31, 2020, 76 corporate insolvency resolution processes (CIRP) ended in resolution, 128 CIRPs were closed due to withdrawal or appeal or settlement and 189 companies went into liquidation.

Further, the government temporarily suspended the initiation of CIRP under Section 7, 9 and 10 of the Code for a period of six months or such further period not exceeding one year from March 25, 2020. The benefit of the suspension is applicable to all those defaults of the corporate debtor that occur from March 25, 2020 and till the end of the period of suspension.

Such defaults arising from March 25, 2020 and till completion of suspension period will remain as 'non est' for the purpose of initiation of CIRP under the code as permanent carve out.

The 283 bankruptcies declared during the pandemic pertain to defaults made before March 25, 2020.

Source: IANS