The Corporate Affairs Ministry has decided to withdraw 7,338 prosecutions under the companies law that are pending before various courts as part of promoting the ease of doing business.
Prosecutions related to serious non-compoundable offences such as cheating, fraud and acceptance of deposits would not be considered for withdrawal.
In 2017, the ministry had withdrawn 14,247 prosecutions.
Another 7,338 prosecutions pending before various courts will be withdrawn under Special Arrears Clearance Drive-II towards promoting ease of doing business and decriminalisation of compoundable offences under Companies Act, 2013, it said in a release on Friday.
The withdrawal "will lead to a 21.86 per cent reduction in pending prosecutions being pursued by the Central government," it added.
The ministry had constituted a committee to undertake a thorough review of all the pending litigations.
"Long pending prosecutions for compoundable offences have been identified for withdrawal. Prosecutions related to serious non-compoundable offences such as cheating, fraud, acceptance of deposits, pending charges, etc. have not been considered for withdrawal.
"This decisive step will also unclog the courts as well as foster the growth of corporate sector in India, while maintaining a healthy corporate governance framework," the release said.