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The Corporate Affairs Ministry (MCA) has decided to withdraw another 7,338 prosecutions launched under Companies Act and pending before various courts.
This would lead to significant decrease of 21.86 per cent in the pending prosecutions being pursued by the Central Government.
It maybe recalled that the Government’s “Action Plan for Special Arrears Clearance Drives” for reducing the number of pending litigations had previously resulted in withdrawal of 14,247 prosecutions during the Special Drive-I in the year 2017.
The MCA had constituted a committee to undertake a thorough review of all pending litigations. Long pending prosecutions for compoundable offences have been identified for withdrawal.
Prosecution related to serious non compoundable offences such as cheating, fraud, acceptance of deposits, pending charges 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, MCA has said.
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