The Ministry of Corporate Affairs to Withdraw 7,338 Prosecutions

The decision to withdraw 7,338 prosecutions under the companies’ law, which are currently pending before various courts, has been made by the corporate affairs ministry. This move is aimed at promoting the ease of doing business. However, it is important to note that prosecutions related to serious non-compoundable offenses like cheating, fraud, and acceptance of deposits will not be included in the withdrawal process. This action follows a similar withdrawal of 14,247 prosecutions by the ministry back in 2017.

The ministry recently announced that 7,338 pending prosecutions will be withdrawn as part of the Special Arrears Clearance Drive-II, which aims to promote ease of doing business and reduce criminalisation of compoundable offenses under the Companies Act of 2013. The ministry emphasised that this withdrawal will result in a significant 21.86 percent decrease in the number of pending prosecutions pursued by the central government.

To ensure a comprehensive evaluation of all pending litigations, the ministry formed a committee. Through this review, they have identified long-standing prosecutions for compoundable offenses that will be withdrawn.