Over 2L firms shut in 5 yrs

The Indian government has reported that over 2 lakh private companies have been closed in the last five years.

These companies were shut down for various reasons like merging with other companies, changing their type, or being dissolved.

The highest number of closures happened in 2022-23, with 83,452 companies shutting down.

In the current financial year, 20,365 companies have been closed so far.

The government also mentioned that 1,85,350 companies have been removed from official records since 2021-22.

However, there is no plan to help the employees of these closed companies find new jobs.

The government also noted that the term 'shell company' is not defined in the Companies Act, 2013.