Official Gazette Notification Text
Official TranscriptGOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA UNSTARRED QUESTION No.1398 ANSWERED ON MONDAY, FEBRUARY 09, 2026 Penalties under the Companies Act 1398. Shri M K Raghavan Adv. Adoor Prakash Dr. Kalyan Vaijinathrao Kale Shri K Sudhakaran Will the Minister of CORPORATE AFFAIRS be pleased to state: (a) whether the Government has observed an increase in cases of non- compliance with...
GOVERNMENT OF INDIA MINISTRY OF CORPORATE AFFAIRS LOK SABHA UNSTARRED QUESTION No.1398 ANSWERED ON MONDAY, FEBRUARY 09, 2026 Penalties under the Companies Act
1398. Shri M K Raghavan Adv. Adoor Prakash Dr. Kalyan Vaijinathrao Kale Shri K Sudhakaran
Will the Minister of CORPORATE AFFAIRS be pleased to state:
(a) whether the Government has observed an increase in cases of non- compliance with provisions of the Companies Act, 2013 in the country during the last ten years;
(b) if so, the total number of companies penalised for non-compliance under various provisions of the Companies Act, 2013, during the last ten years, year and State/UT-wise;
(c) the total number of penalties imposed and amount recovered during this period;
(d) the number of companies struck off from the register of companies for non-filing of statutory returns since 2020, year-wise;
(e) the action taken by the Government to strengthen corporate governance and protect minority shareholders; and
(f) whether the Government has conducted any review of the impact of these enforcement measures on improving corporate governance and compliance levels, if so, details thereof and if not, the reasons therefor? ANSWER Minister of State in the Ministry of Corporate Affairs; Minister of State in the Ministry of Road Transport and Highways.
(SHRI HARSH MALHOTRA)(a) There is no trend indicating an increase in non-compliance with the provisions of the Companies Act, 2013.
(b) The details of total number of companies penalised for various provisions of the Companies Act, 2013, during the last ten years, State wise are at Annexure - I.
(c) The details of number of penalties imposed and amount recovered during the last 10 years are at Annexure - II and Annexure - III respectively.
(d) The details of number of companies struck off are at Annexure -IV.
(e) The provisions of the Companies Act, 2013 and the rules made thereunder contain adequate provisions to ensure financial accountability and transparency in the management of companies. The important aspects of the Companies Act, 2013 for safeguarding the interests of all stakeholders including that of minority shareholders is at Annexure-V.
(f) The Act provides a legal framework to address minor and major violations, including inter alia adherence to accounting and auditing standards, statutory filings, duties of the Board and its committees, responsibilities of independent directors and auditors, and mandatory disclosures. Enforcement actions including adjudication, compounding and court convictions have led to the penalisation of such companies for non-compliance. These enforcement actions are monitored regularly.
*****Annexure – I Total number of companies penalised for non-compliance S. Name of 2016- 2017- 2018- 2019- 2020- 2021- 2022- 2023- 2024- 31.12.25 No. State/ 2017 2018 2019 2020 2021 2022 2023 2024 2025 UT
1. Andhra 0 0 0 5 0 8 136 21 7 4 Pradesh
2. Arunach 0 0 0 0 0 0 0 0 0 0 al Pradesh
3. Assam 0 0 0 0 2 4 4 4 9 2
4. Bihar 0 0 17 25 3 14 55 31 19 7
5. Chandig 0 0 0 1 3 6 2 3 10 0 arh
6. Chhattis 0 4 0 0 0 19 7 68 34 19 garh
7. Dadar 00 00 00 00 00 00 01 02 00 00 and Nagar Haveli
8. Daman 0 0 0 7 0 0 0 1 1 1 & Diu
9. Goa 0 0 7 101 0 0 5 0 9 8
10. Gujarat 0 0 0 25 5 47 152 169 57 48
11. Haryana 6 14 0 6 2 5 29 37 19 24
12. Himach 0 0 0 1 0 0 0 2 2 0 al Pradesh
13. Jharkha 0 0 0 0 0 0 0 0 1 0 nd
14. Karnata 0 0 18 112 89 98 66 93 202 96 ka
15. KERAL 31 9 5 240 89 24 98 11 20 10 A
16. Madhya 0 3 6 12 14 29 17 68 16 7 Pradesh
17. Maharas 0 0 231 100 10 15 36 144 211 185 htra
18. Manipur 0 0 0 0 0 0 0 0 0 0S. Name of 2016- 2017- 2018- 2019- 2020- 2021- 2022- 2023- 2024- 31.12.25 N. State/ 2017 2018 2019 2020 2021 2022 2023 2024 2025 UT
19. Meghala 0 0 0 0 0 0 0 1 0 0 ya
20. Mizora 0 0 0 0 0 0 0 0 0 0 m
21. Nagalan 0 0 0 0 0 0 0 0 0 0 d
22. NCT of 58 13 20 103 52 31 110 141 135 107 Delhi
23. Odisha 22 18 2 31 4 10 12 7 3 18
24. Puduche 3 9 0 0 6 1 10 10 9 0 rry
25. Punjab 0 0 0 2 5 15 3 11 23 13
26. Rajastha 11 14 8 13 3 3 21 23 3 10 n
27. Tamil 28 8 31 22 20 26 89 56 139 54 Nadu
28. Telanga 133 9 10 19 6 22 8 7 18 31 na
29. Tripura 0 0 0 0 0 0 0 0 0 0
30. UT of 0 0 0 1 0 0 2 2 0 3 Jammu and Kashmir
31. UT of 0 0 0 0 0 0 0 0 0 0 Ladakh
32. Uttar 0 0 0 31 0 22 3 18 80 29 Pradesh
33. Uttarak 0 0 0 0 0 0 1 3 2 1 hand
34. West 23 4 13 4 5 5 34 47 37 26 Bengal
35. UT of 0 0 0 0 0 0 0 0 0 0 Andaman & Nicobar 36 UT of 0 0 0 0 0 0 0 0 0 0 Lakshad weep Total 315 105 368 861 318 404 901 980 1066 703Annexure – II Total amount of penalties imposed (Amount in Rupees) S. Name of 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 31.12.25 N. State/ UT
1. Andhra 0 0 0 691000 0 5538750 163105200 36865400 8433800 25508900 Pradesh
2. Arunachal 0 0 0 0 0 0 0 0 0 0 Pradesh
3. Assam 0 0 0 0 400000 1088000 758190 1627650 9239300 7770000
4. Bihar 0 0 7200000 1285000 1231100 3160000 28471650 28300300 23871400 10313100
5. Chandigar 00 00 00 00 0 15174 00 3353500 3353500 00 h
6. Chhattisg 0 34000 0 0 0 6224000 2051000 25581100 6796375 16236450 arh
7. Dadar and 0 0 0 0 0 0 6000 177600 0 0 Nagar Haveli
8. Daman & 0 0 0 5103600 0 0 0 400000 190000 1200000 Diu
9. Goa 0 0 0 45462000 0 0 4675200 0 34897600 18439950
10. Gujarat 7850 334085 1132567 734500 886000 34524100 44563750 40927650 71426848 27887200
11. Haryana 2300000 2478000 0 600000 125000 1629000 4855842 8498923 76407600 9432500
12. Himachal 0 0 0 0 0 0 0 4878850 0 0 Pradesh
13. 0 0 0 0 0 0 0 0 5,00,000 0 Jharkhan d
14. Karnatak 0 0 620000 38590600 26962000 59087758 33645879 90429110 174469310 38006707 a
15. Kerala 0 0 0 22945000 0 0 40000 5172200 14904100 2838600
16. Madhya 0 729000 813000 2840000 2060000 5764000 5402400 78871800 17263100 3741000 Pradesh
17. Maharash 0 0 3110450 16266000 17143400 29822500 28090900 157610420 136056493 143541821 tra
18. Manipur 0 0 0 0 0 0 0 0 0 0S. Name of 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 31.12.25 N. State/ UT
19. Meghalay 0 0 0 0 0 0 0 1500000 0 0 a
20. Mizoram 0 0 0 0 0 0 0 0 0 0
21. Nagaland 0 0 0 0 0 0 0 0 0 0
22. NCT of 20985000 4952000 4947000 2691000 5817300 8547500 22322600 13910002 46137650 45061819 Delhi
23. Odisha 1867000 5106000 2097000 18100600 1156000 8532400 9158300 7431600 8860700 21717900
24. Puducherr 0 0 0 0 0 51000 4011900 4115000 14954000 0 y
25. Punjab 0 0 0 555000 1288000 6761300 931950 8719700 17212800 63200000
26. Rajasthan 82858 491284 406012 265200 20000 3485500 14918050 16671000 47165400 1755000
27. Tamil 0 0 0 49763500 2960000 4249700 88318100 60738106 141853569 51223200 Nadu
28. Telangana 0 0 0 5767200 463200 3893600 20814382 25693450 23148400 0 29 Tripura 0 0 0 0 0 0 0 0 0 0 30 UT of 0 0 0 400000 0 0 2004000 8397200 0 1841000 Jammu & Kashmir
31. UT of 0 0 0 0 0 0 0 0 0 0 Ladakh 32 Uttar 0 0 0 10100000 0 8224000 2292600 23871600 197838700 52074500 Pradesh
33. Uttarakha 0 0 0 0 0 0 250000 993000 843400 622000 nd
34. West 4882500 700000 334500 1047500 1639100 1500000 28808200 27839000 14244800 12585450 Bengal 35 UT of 0 0 0 0 0 0 0 0 0 0 Andaman & Nicobar 36 UT of 0 0 0 0 0 0 0 0 0 0 Lakshadw eep Total 30125208 14824369 20660529 223207700 62151100 192083108 509496093 679220661 1090068845 554997097Annexure – III Total amount recovered in the last ten years (Amount in Rupees) S. Name of 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 31.12.25 N. State/ UT
1.
Andhra 0 0 0 496200 0 2041950 35811260 4357400 1545000 10000 Pradesh
2.
Arunachal 0 0 0 0 0 0 0 0 0 0 Pradesh
3.
Assam 0 0 0 0 400000 1088000 758190 839350 415000 777000
4.
Bihar 0 0 0 0 0 0 534400 342000 911050 5000
5.
Chandigar 00 00 00 0 00 00 00 00 992000 00 h
6.
Chhattisg 0 25000 9000 0 0 24000 150000 1115000 2866375 1104000 arh
7.
Dadar and Nagar 00 00 00 0 0 0 00 0 0 0 Haveli
8.
Daman & 0 0 0 196850 0 0 0 400000 190000 0 Diu
9.
Goa 0 0 0 1746055 0 0 900000 0 34897600 8572050
10.
Gujarat 500 33300 29400 6000 0 3000 0 0 0 0
11.
Haryana 0 0 0 0 125000 110000 1138000 6150718 4080800 6812500
12.
Himachal 0 0 0 0 0 0 0 0 0 0 Pradesh
13.
Jharkhan 0 0 0 0 0 0 0 0 500000 0 d
14.
Karnatak 0 0 620000 13280740 17892500 19900758 13705429 35231241 67482558 7045814 a
15.
KERALA 0 0 0 4496850 0 0 40000 450000 1163000 860000
16.
Madhya 0 0 340000 120000 565000 1402000 1903400 948500 727250 3241000 Pradesh
17.
Maharash 0 0 3110450 1845000 1611500 12745800 20662500 38400800 58357710 14687743 tra
18.
Manipur 0 0 0 0 0 0 0 0 0 0S. Name of 2016-2017 2017-2018 2018-2019 2019-2020 2020-2021 2021-2022 2022-2023 2023-2024 2024-2025 31.12.25 N. State/ UT
19.
Meghala 0 0 0 0 0 0 0 230000 0 0 ya
20.
Mizoram 0 0 0 0 0 0 0 0 0 0
21.
Nagalan 0 0 0 0 0 0 0 0 0 0 d
22.
NCT of 145000 0 1685000 388000 2378900 282900 5665750 4470000 9430918 15081931 Delhi
23.
Odisha 363000 134000 0 20000 0 459000 160000 6331600 416500 4266100
24.
Puduche 0 0 0 0 0 51000 20000 80000 1800000 0 rry
25.
Punjab 0 0 0 0 88000 307000 0 1382500 4103000 1800000
26.
Rajastha 31758 133728 211000 0 15000 296000 1469500 4366150 7398380 0 n
27.
Tamil 0 0 0 4282200 2960000 838700 8049700 1859400 9097800 8962700 Nadu
28.
Telangan 0 0 0 4874200 463200 3133600 10386484 3471250 14499420 892000 a 29 Tripura 0 0 0 0 0 0 0 0 0 0 30 UT of Jammu 0 0 0 0 0 0 404000 0 0 0 and Kashmir
31.
UT of 0 0 0 0 0 0 0 0 0 0 Ladakh 32 Uttar 0 0 0 130000 0 0 0 50000 7872900 70000 Pradesh
33.
Uttarakh 0 0 0 0 0 0 0 713000 843400 622000 and
34. West 0 140000 0 32500 0 185000 7439200 6832800 15723700 386500 Bengal 35 UT of Andama 0 0 0 0 0 0 0 0 0 0 n & Nicobar 36 UT of Lakshad 0 0 0 0 0 0 0 0 0 0 weep Total 540258 466028 6004850 31914595 26499100 42868708 109197813 118021709 245314361 75196338Annexure-IV The number of companies struck off from the register of companies as per section 248(1) and 248(2) of the Companies Act, 2013.
Sl. Year No of companies struck off under the No. Companies Act 248(1) and 248 (2) 1 2020-2021 217 12,487 2 2021-2022 28,305 33,923 3 2022-2023 68,893 13,169 4 2023- 2024 0 16,464 5 2024-2025 0 15,837 6 2025- till 31.12.2025 0 14,082 Total 97,415 1,05,962Annexure – V Safeguarding the interests of all stakeholders including that of minority shareholders
(i) Accountability for management of companies through appointment of key managerial personnel, requirement for approvals by Board of directors and shareholders in accordance with the applicable provisions;
(ii) Requirement for audit of financial statements by an independent chartered accountant;
(iii) Requirement to make disclosures (in the form of notices, resolutions, postal ballots etc), from time to time, to the shareholders for information and approval by the shareholders;
(iv) Requirement to make adequate disclosures through Board's report including with regard to risk management, state of company's affairs, material changes affecting company's financial position and other crucial parameters;
(v) Requirements to file various documents, copies of resolutions, financial statements, returns etc. with the Registrar from time to time;
(vi) The Registrar of Companies take action against the defaulting companies who fail to file their Annual Returns and/or Financial Statements by either filing prosecution under section 92, 96, 99, 137 of the Companies Act, 2013 or by striking off the name of the companies under section 248 (1) of the Companies Act, 2013 read with Companies (Removal of names of companies from the Register of Companies) Rules,
2016.
Provision for the protection of Minority shareholders the following provisions are provided in the Companies Act 2013 and the Rules made thereunder.
(a) Sections 241 to 246, allow minority shareholders to approach the National Company Law Tribunal (NCLT) if the company’s affairs are being conducted in a manner "prejudicial" or "oppressive" to them.(b) Under Section 151, a listed company may have one director elected specifically by small shareholders (those holding shares with a nominal value of not more than ₹20,000).
(c) Under Section 235, In a scheme of arrangement, if a majority (90% in value) agrees to a transfer of shares, the transferee company can acquire the shares of dissenting shareholders, but they have the right to appeal to the Tribunal if the offer is unfair.
(d) Under Section 236, If a majority acquirer reaches 90% shareholding, they must offer to buy out the remaining minority at a price determined by a registered valuer.
(e) Under Section 100, Shareholders having not less than 10% of voting power having the Right to requisition an Extraordinary General Meeting (EGM).
(f) Under Section 94, shareholders have the right to inspect statutory registers and minutes of general meetings.
(g) Related Party Transactions under Section 188, In all material transactions between the company and its promoters/directors as prescribed in the Rule 15(3) of Companies (Meetings of Board and its Powers) Rules 2014, require shareholders’ approval. The interested shareholders cannot vote on such resolutions, giving the minority shareholders the required protection.
*******