No. 1/5/2000-CL.V

Government of India

Ministry of Law, Justice & Company Affairs

Department of Company Affairs

5^th floor, `A’ Wing,

Shastgri Bhavan,

Dr. R.P. Road, New Delhi.

Dated: 16^th November, 2000

A Scheme namely, the Fast Track Scheme under Section 560 of the Companies Act has been launched by this Department recently for allowing companies which, due to various reasons have failed to take off, to get their name strikked off from the Register of Companies maintained by Registrar of Companies under that section. Details in this regard were issued through Press Note No: 10/2000 dated 25.9.2000 and General Circular No: 10/2000 dated 20.9.2000.

2. Two common problems have been highlighted by the professionals/ professional bodies in following the procedure prescribed in this Scheme.

2.1 First one relates to getting the two affidavits prescribed by the Department signed on a stamp paper by a Judicial Magistrate. It has been represented before the Department that going before the Magistrate is not easy for various reasons. The Department has, therefore, considered this matter in detail and a decision has been taken that the affidavit could be signed by Magistrate or by Notary Public with Seal.

2.2 Secondly, there were, inter-alia, the following conditions (mentioned in clause (e) and (f) of General Circular 10/2000 dated 20.9.2000) to be fulfilled by a company which wishes to avail of this Scheme for strikking off its name:

• A certificate from the auditor that the company is not doing any business and does not owe any amount to Tax Authorities/Banks and Financial Institutions has been submitted.

• A clearance certificate of Tax dues (from Income Tax, Sales Tax, Excise etc.) has been attached.

Various suggestions/representations have been received by the Department informing the non-applicability of Income Tax Act, Sales Tax Act and Central Excise to those companies which have not done any business since their incorporation or for a fairly long period and problems involved in getting these certificates by such companies. It has, therefore, been decided that in case of companies which have not done any business since their incorporation as well as for a fairly longer period can give an Affidavit along with an Indemnity Bond in prescribed form on a stamped paper.

3. Further on the basis of various representations received from Companies, Professionals, Institutes, Chamber of Commerce etc. the Scheme has been extended by one month.

Sd/-

(A. Ramaswamy)

Joint Secretary to the Govt. of India

Endt.No. 1/5/2000-CL.V dated

Copy forwarded to Shri M.Y. Siddiqui, PIO, Press information Bureau, Shastri Bhavan, New Delhi with the request that the Press Note may kindly be given wide publicity.

Sd/-

(A. Ramaswamy)

Joint Secretary to the Govt. of India

Ph: 338 1226