Pilot for fast distribution of dues from defunct firms

Written by feBureau | New Delhi | Updated: Apr 11 2013, 07:33am hrs
Corporate affairs minister Sachin Pilot has directed the authorities concerned to expeditiously distribute Rs 3,270 crore to claimants realised from the sale of assets of defunct companies.

Pilot took a meeting of the Official Liquidators (OLs) attached with different high courts on Tuesday to take stock of their work relating to dissolution and winding up of companies.

According to the corporate affairs ministry, there are 4,988 firms which are still awaiting dissolution in various high courts. Out of this number, 1,046 companies are pending dissolution for more than 20 years and 728 companies had no assets.

The minister directed that the sum of R 3,270 crore, realised by selling off the assets of defunct companies and lying with the banks at different places should be expeditiously distributed amongst all the claimants including workers, creditors and other stakeholders, said an official statement issued by the ministry.

The minister said that delay in winding up of companies and distribution of dues to claimants not only discourages further investment in the industrial sector domestically but also sends negative signals to investors abroad. Pilot assured all help from the MCA for providing skilled manpower, technical upgradation and capacity building of personnel assisting official liquidators for adoption of newer techniques like e-Governance and e-Auctions, the statement said.