The Ministry of Corporate Affairs (MCA) has notified that the Director Identification Numbers (DINs) of Directors found to be disqualified post-demonetization has been deflagged since the restriction was for five years.
“Ministry of Corporate Affairs had flagged the DINs of Directors found to be disqualified under subsection 2(a) of section 164 of the Companies Act, 2013 w.e.f. 1st November 2016 for a period of five years. This is for the information of all the concerned that DINs eligible to be de-flagged on expiry of the period of disqualification are in the process of verification. Necessary action shall be taken shortly,” the Ministry said.
The Ministry deactivated around 19 lakhs (19,40,313) Director Identification Numbers in the MCA21 Database due to non-filing of Know Your Client (KYC), as of 28.11.2019.
As per records, the MCA21 Database does not contain information regarding the employment details of directors / DIN holders. 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 the 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.
