Deptt of Financial Services’ issues directive to Banks

Speed Post News Network

New Delhi : The central government has stepped up decisive action against companies falling within the ambit of Section 248 of the Companies Act. The names of 2,09,032 companies have been struck off from the Register of Companies under Section 248 (5) of the Act. The existing Directors and authorized signatories of such struck off companies will now become ex Directors or ex authorized signatories.

These individuals will therefore not be able to operate bank accounts of such companies till such companies are legally restored under Section 252 of the Companies Act by an order of the National Company Law Tribunal. The restoration, as and when it happens shall be reflected by change in the status of the company from ‘Struck off’ to ‘Active’.  Since such ‘Struck off`’ companies have ceased to exist, action has been initiated to restrict the operation of Bank accounts of such companies, according to a PIB release.

The Department of Financial Services has, through the Indian Banks Association, advised all Banks to take  immediate steps to put restrictions on bank accounts of such companiesies. A list of such companies, Registrar of Companies wise, has been published on the website of the Ministry of Corporate Affairs, according to the PIB release.