Ministry of Corporate Affairs (MCA) is likely to soon withdraw a large number of court cases that are going on in various courts in different cities across India. The corporate affairs ministry has shortlisted 11000 cases that they will withdraw from the courts. 

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MCA has filed about 34 thousand cases against companies in different courts of the country in the past few years. Now, they have created a category of cases that can be withdrawn. One of the major reasons behind the withdrawal of the cases is the lack of responses. In many of the cases, there has been no response from the end of the respondents in the last five years. 

A lot of the cases were also against the defaulting companies against whom section 248 has not been filed but the case has languished in court for more than two years. Although, the ministry has clarified that the cases will not be refunded against those companies which are either listed companies or come under the Vanishing category or have taken public deposits. 

A few weeks ago, the National Company Law Tribunal (NCLT) sought a major expansion of its capacity to further speed up the admission of bankruptcy petitions and clear the backlog of cases. Although, as per the official record available on the website of the MCA, no company has been prosecuted in the last month. 

MCA recently mentioned in its bulletin that India has more than 24 lakh registered companies but only 62 percent of them were actively functioning at the end of September.  MCA has recently improved the ease of registering business entities. Over the past few years, the government has decriminalized some of the key provisions and eased various statutory requirements in the Companies Act.