MCA Directs Distribution of Monies realized from Assets of Defunct Companies

Shri Sachin Pilot Directs Expeditious Distribution of Rs 3,270 Crore, Realized from the Assets of Defunct Companies, to Claimants

Corporate Affairs Minister ShRI Sachin Pilot took a meeting of the Official Liquidators (OLs) attached with different High Courts here yesterday to take stock of their work relating to dissolution and winding up of companies.

It was observed that there were 4,988 companies awaiting dissolution in various High Courts out of which 1,046 companies are pending dissolution for more than 20 years. There were 728 companies which had no assets the Minister directed that rapid progress must be made in the next three months in respect of these companies. Similarly, the Minister further directed that the sum of Rs 3,270 crore, realized by selling off the assets of defunct companies and lying with the banks at different places should be expeditiously distributed amongst all the claimants including workers, creditors and other stakeholders.

The Minister pointed out that OLs have a very important role to play in improving the overall industrial and investment climate of the country. Delay in winding up of companies and distribution of dues to claimants not only discourages further investment in the industrial sector domestically but also sends negative signals to investors abroad. He assured all help from the Ministry for providing skilled manpower, technical upgradation and capacity building of personnel assisting official liquidators for adoption of newer techniques like e-Governance and e Auctions.

The Minister also emphasised the need for early finalization of a Manual to standardize work methods and to lay down uniform standard operating procedures. The Manual will also determine norms of efficient functioning and set timelines for various activities performed by OLs. The Minister also announced that in order to improve the functional skills of the officials dealing with liquidation proceedings,, special training capsules will be organized at the Indian Institute of Corporate Affairs, New Delhi.

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