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Decriminalization fires up RoC action
Mint Mumbai
|November 24, 2023
Jump in orders eases load on judicial system, aids businesses
Registrars of Companies (RoCs) stepped up action after the 2019 decriminalization of various company law violations, resulting in a near fivefold jump in orders in just four years. These orders entail a penalty but no prosecution, easing the load on the judicial system and freeing up companies to focus on their business.
Over 2019 and 2020, the government decriminalized over four dozen violations for faster adjudication of corporate defaults and lapses. These cases are now decided upon by RoCs under the ministry of corporate affairs (MCA), which are staffed by members of the Indian Company Law Service. MCA data showed that RoCs issued 157 orders on such cases in 2019, a number that jumped to 765 in 2023 till 22 November.
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