Centre to launch settlement scheme for defaulting firm

Under the ‘Company Law Settlement Scheme-2011’,MCA has decided to even grant immunity to defaulting companies from prosecution and charge only 25 per cent of additional pay payable if erring corporates file their documents.

“The new scheme is being launched throughout the country in order to give an opportunity to defaulting companies to enable them to make their default good by filing such belated documents and to become a regular compliant in future,” Registrar of Companies,Raj Singh said on Tuesday.

The scheme will come into force from August 12 and will remain in force up to October 31,2011.

The Ministry has observed that because of non-filling of statutory documents (Balance Sheets and Annual Returns) by a large number of companies,records are not updated and thereby stakeholders could not inspect the same,he added.

Registrar will be taking action under Companies Act,1956 against defaulting companies who do not avail the settlement scheme,he said. With PTI inputs