2 weeks ago
Fadnavis Hits Back at Pawar Over Maharashtra's 36,211 Closed Companies
In Maharashtra, a big state in India, a leader named Sharad Pawar said that more than 36,000 companies had closed down, and he worried this was bad for jobs.
The top leader of the state, Devendra Fadnavis, disagreed with him.
He explained that most of those companies never really started working, so they are called 'defunct.'
He also said Maharashtra still has the most active companies in the whole country, with about 3,96,211 companies, more than Delhi or Uttar Pradesh.
Pawar also worried that 20 companies in an industrial area called Chakan wanted to move away because of traffic, pollution, water, electricity and bad roads.
Fadnavis said the government is making short-term and long-term plans to fix these problems.
He promised that the government wants every company to stay in Maharashtra.
Opposition leaders said the number of new companies being created in Maharashtra is growing more slowly than in states like Uttar Pradesh and Gujarat.
Both sides say they want companies and jobs to be safe in the state.
Fadnavis countered Sharad Pawar's claim that 36,211 companies closed in Maharashtra, saying about 76% were defunct entities that never commenced operations.
Maharashtra leads India with 3,96,211 active companies as of June 3, 2026, followed by Delhi (2,72,342) and Uttar Pradesh (1,85,982).
India's active companies rose more than threefold, from 6,78,768 in 2015-16 to 21,17,747 as of June 2026.
Pawar said 20 companies in the Chakan industrial area employing over 2,000 workers planned to relocate due to traffic congestion, pollution, water, electricity and road problems.
Fadnavis said a meeting on August 12 involving MIDC, PMRDA, NHAI and other agencies finalised short- and long-term plans to ensure that not a single industry leaves Chakan.
- Who
- Maharashtra Chief Minister Devendra Fadnavis and NCP (SP) chief Sharad Pawar, with NCP MLA Rohit Pawar, Congress state president Harshvardhan Sapkal, Industries Minister Uday Samant and Deputy CM Sunetra Pawar also involved in the exchange.
- What
- Fadnavis rebutted Pawar's claim that 36,211 companies closed in Maharashtra over five years, saying most were defunct, and responded to concerns that 20 companies in Chakan planned to relocate.
- Where
- Maharashtra, India, particularly the Chakan industrial area in Pune and other belts such as Talegaon.
- When
- Fadnavis responded on Friday, August 14, 2026; the closure data was shared in the Lok Sabha on August 10, and a meeting on Chakan infrastructure was held on August 12.
- Why
- The dispute arose from a political debate over whether infrastructure deficiencies and company closures signal a deteriorating industrial environment in Maharashtra.
Sharad Pawar / Opposition Critique
Devendra Fadnavis / State Government
Company closure statistics
Sharad Pawar / Opposition Critique
Pawar said 36,211 companies closed over five years and questioned whether the government knew how many jobs were lost and whether affected workers received adequate compensation; NCP MLA Rohit Pawar noted Maharashtra's 282% growth in registrations trails Uttar Pradesh's 453%, Gujarat's 417% and Telangana's 360%.
Devendra Fadnavis / State Government
Fadnavis argued the figure lacks context: about 76% of closed companies were defunct firms that never operated, around 12% were amalgamations and 2% were dissolutions, and Maharashtra still leads in active and new company registrations.
Chakan infrastructure and relocation
Sharad Pawar / Opposition Critique
Pawar said 20 companies employing over 2,000 workers decided to relocate from Chakan due to traffic congestion, pollution, water, electricity and poor roads, urging urgent infrastructure work in Chakan, Talegaon and other industrial belts to protect jobs.
Devendra Fadnavis / State Government
Fadnavis acknowledged the problems, directed Industries Minister Uday Samant to address them, and said short- and long-term plans were finalised after an August 12 meeting so that 'not a single industry' leaves Chakan.
Business environment
Sharad Pawar / Opposition Critique
The Opposition attributed closures to excessive government interference, widespread corruption (including alleged land allotments such as 1,500 acres in Ahilyanagar to Nibe Group without tenders) and an unfavourable business environment, highlighted by Maharashtra's ninth ranking in NITI Aayog's Investment Friendliness Index 2026.
Devendra Fadnavis / State Government
Fadnavis said Maharashtra is industry-friendly, has consistently been number one in foreign investment, and continues to attract investment and lead new company registrations.
Key facts
- Closed companies in Maharashtra (5 years)
- 36,211
- Share deemed defunct
- About 76%
- Active companies in Maharashtra (June 3, 2026)
- 3,96,211
- Active companies in India (June 2026)
- 21,17,747
- New companies registered in Maharashtra (2025-26)
- 41,525
- Chakan companies planning relocation
- 20
- Workers employed by Chakan firms
- Over 2,000
- Meeting on Chakan issues
- August 12
Quotes
Chief Minister Devendra Fadnavis
Chief Minister of Maharashtra, India
“Why have such a large number of companies become dysfunctional? Isn’t it your responsibility as the Chief Minister to find answers to this? If companies were registered but did not commence operations, is this not a failure of your policies?”
thestatesman.com
“"You are a sensible and senior leader who always thinks of the state’s welfare. So, there should be no misunderstanding in your mind. Of the companies that closed, 76 per cent are defunct."”
theprint.in
Sources
Opposition slams Fadnavis Government over closure of 36,000 companies in Maharashtra
Maharashtra CM Devendra Fadnavis Hits Back At Sharad Pawar Over Maharashtra’s ‘36,211 Closed Companies’ Claim, Says 76% Were Defunct
76 pc of companies classified as closed were defunct, Maharashtra No. 1 in active firms: Fadnavis
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