The restoration, as and when it happens, will be reflected by a change in the status of the company from “struck off” to “active”.
The Department of Financial Services has, through the Indian Banks’ Association, advised banks
that they should take immediate steps to put restrictions on the bank accounts of such companies.
have been advised to go in for enhanced diligence while dealing with even those not struck off by RoCs. Even if a company has active status but has defaulted in filing its financial statements or annual returns relating to the assets on the secured loan, it should be seen with suspicion.
Prima facie, it implied that these companies were not complying with its mandatory statutory obligations to furnish vital information for its stakeholders, the department said.
An RoC can strike off the name of a company on several grounds: If it fails to commence its business within a year of its incorporation; and for not carrying on its business in two preceding financial years and not making an application to obtain the status of a dormant company.
However, the issue came into the limelight recently after the government promised action against shell companies in the aftermath of demonetisation.