Corporate Swachh Bharath Abhiyaan

April, 2017

Since the time Modi Government has taken charge, lot of sweeping changes have been introduced. Some have swept people off their feet, some have swept the opposition off their seats and dumped them into oblivion, some have shaken the bureaucracy out of their slumber, some have stirred the imagination of young minds and propelled them into entrepreneurship, some have wiped off several of their ill-gotten wealth, some have turned currencies into worthless papers, some are wiping off complicated tax laws and ushering in one-nation, one-tax regime. However the biggest change has been the Demonetisation Drive intended to wipe out the black money economy. Several initiatives are being taken in this regard. Some very evident while some are not so. One of them is the spate of notices issued by the Registrar of Companies and IT department. Nearly 10 lac companies have received closure notices for failing to file audited accounts and annual returns. ROCs are invoking their power to strike off the names of such companies as defunct and take action against the directors if they do not hear from them within 30 days. Similarly 4 lac companies have received de-registration notices from IT department for not filing returns. As businessmen, one cannot take it easy and file the returns only when the Chartered Accountant reminds or one needs some funding. The message is clear. If you are doing business genuinely and complying with the rules, you exist. Else, you shall be wiped out. This is basically targeted at shell companies set up to launder money as well as clean lot of ‘dead wood’ companies which are defunct and a burden on the regulatory function. Those of you who have set up companies and LLPs and have either forgotten them as ‘lost love’ or are complacent that you can ‘file when asked for’, wake up ! Take notice and act. Government means business. You will not only lose the entity but also be liable for prosecution for non-compliance. What bigger cleanliness drive than this under ‘Swachh Bharath Abhiyaan’ !

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