Massive Crackdown: Over 13,000 Fake Firms Shut Down in Maharashtra, Nationwide Action Targets GST Evasion
Massive Crackdown: Over 13,000 Fake Firms Shut Down in Maharashtra, Nationwide Action Targets GST Evasion
Thousands of shell companies operating across India have been shown the door as the government tightens its grip on tax evasion. Maharashtra alone has seen more than 13,000 bogus firms struck off the records in what is being described as one of the biggest clean-up drives by the Ministry of Corporate Affairs (MCA) to date.
The ministry, which has been running a sustained campaign against fraudulent business registrations, has now reached its fourth phase of action, deactivating a staggering 96,779 fake companies across the country. Maharashtra ranks second on this list, following Delhi, which tops with 13,378 companies being shut down. Other states hit hard by the crackdown include Uttar Pradesh (11,397 companies), Karnataka (8,008), and West Bengal (6,979).
The central government has been intensifying efforts to identify companies that were allegedly being used as fronts for Goods and Services Tax (GST) evasion. Since Prime Minister Narendra Modi took office, there has been a strong push to trace and eliminate such entities that exploit loopholes in the system to siphon off government revenue.
The Central Registration Centre (CRC), set up in 2016 under Section 396 of the Companies Act, 2013, was originally designed to simplify business registration and improve ease of doing business. However, it came to light that several newly registered firms were being used primarily to conceal income and facilitate tax fraud. Taking serious note of these developments, the government has launched what officials are calling a “corporate cleansing mission”, aimed at restoring transparency and credibility within the corporate ecosystem.
In the latest drive, 96,779 shell entities have been officially struck off from the government registry. The numbers reveal the extent of the problem—thousands of fake companies were being floated across states, not for legitimate business, but to dodge taxes and manipulate financial records. Delhi and Maharashtra together account for a significant share of these closures, reflecting the scale of fraudulent activity in major commercial hubs.
