Non-filing of Know Your Client (KYC) mainly led to deactivation of DINs
The Ministry of Corporate Affairs (MCA) deactivated 19,40,313 Director Identification Numbers (DINs) in the MCA21 Database due to non-filing of Know Your Client (KYC), as on 28 November 2019. This was stated by Anurag Singh Thakur, Minister of State for Finance & Corporate Affairs, in a written reply to a question in Rajya Sabha on 03 December 2019.The Minister further stated that the MCA21 Database does not contain information regarding employment details of directors/DIN holders.
Informing the House, the Minister stated that the terms Ghost Directors and Shell Companies are not defined in the Companies Act, 2013. However, during the Financial Year 2017-18 and 2018-19, Registrar of Companies (ROCs) had struck off 3,38,963 companies u/s 248 of the Companies Act, 2013 for failing to file Financial Statements or Annual Returns and total number of 4,24,454 directors were disqualified under the provisions of section 164(2)(a) read with Section 167(1) of the Companies Act, 2013.
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