Linking DIN with PAN and Aadhaar at the stage of DIN application is underway – MCA

Linking DIN with PAN and Aadhaar at the stage of DIN application is underway to check the problem of Dummy Directors- MCA

Recently the Ministry of Corporate Affairs had striked off more than 2 lakhs of companies for remaining inactive for a period of two (2) years or more.

Now, MCA vide a press release issued today has informed that with a view to checking the problem of Dummy Directors, action is underway to seed DIN with PAN and Aadhaar at the stage of DIN application through biometric matching for new applications. The same may be extended to legacy data in due course.

The Press Release states that the Prime Minister’s Office has constituted a Special Task Force (STF) under the Joint Chairmanship of Revenue Secretary and Secretary, Corporate Affairs, to oversee the drive against such defaulting companies with the help of various enforcement agencies. The Special Task Force has so far met five (5) times and action has been initiated against several defaulting companies, which is expected to help in the drive against black money.

Separately, action has also been taken to disqualify Directors on the Board of Companies that have failed to file Financial Statements and/or Annual Returns for a continuous period of three (3) financial years during 2013-14 to 2015-16. Around 3.09 lakh Directors have been affected by this action. Preliminary enquiry has shown that over 3,000 disqualified Directors are Directors in more than 20 companies each, which is beyond the limit prescribed under the Law.