400 bogus companies struck down in J&K

SRINAGAR: The Registrar of Companies in Jammu and Kashmir has struck off over 400 companies for non-filing of business status, an official said on Sunday.

Continuing its drive against bogus companies in the union territory, the Registrar of Companies exercised powers under Section 10A of the Companies Act 2013 to strike off these companies.

"All the companies who haven't started business and have not filed the report with the registrar were struck off. A due procedure has been followed and an opportunity was given to the company to prove their businesses," a source in the know of things said.

"The registrar of companies further got the bank accounts of all these companies frozen immediately through DFS and by writing to the banking association. These companies can't use the bank accounts held in their names once frozen.

"This exercise is believed to be a check on shell companies as the companies should be transparent in their businesses; either you function or take a dormant status as per relevant sections of company law," the source added.