“During the last three years more than 1,25,000 companies have been incorporated every year in the country in this manner, as compared to 50-60,000 companies in earlier years,” the ministry said in a release.
Among others, the ministry has made the process transparent and non-discretionary for dematerialisation of securities of unlisted public companies.
It noted that “more than 14,000 prosecutions under the Companies Act, 2013” have been withdrawn and that second phase of de-criminalisation of penal provisions under the law has been initiated.
As part of de-criminalisation of technical and procedural violations under companies law and reducing the burden on criminal courts as well as the National Company Law Tribunal (NCLT), the government has shifted 16 offences sections to monetary penalty regime.
As per the latest report on the Resolving Insolvency Index, India’s ranking jumped 56 places to 52nd in 2019 from 108th in 2018, the release said.
“Recovery rate increased from 26.5 per cent in 2018 to 71.6 per cent in 2019 and time taken in recovery improved from 4.3 years in 2018 to 1.6 years in 2019,” it added.
More than 9,600 cases involving a total amount of nearly Rs 3.75 lakh crore have been disposed of at the pre-admission stage of the insolvency law process, it said.
The ministry is implementing the Insolvency and Bankruptcy Code (IBC).