MCA wants probe in 130 pending cases to be completed by month-end

The division of regions ensures that investigations and regulatory oversight are conducted efficiently

The ministry of corporate affairs (MCA) has set a March-end deadline for submitting probe reports in 100-130 cases, which have been pending for more than three years, a government  official said.

The directive to regional directors and registrars of companies (RoCs) is aimed at enhancing corporate governance and streamlining regulatory processes while providing a conducive business environment.

"As a policy decision, 100-130 cases pending with MCA for investigation since the last three years need to submit reports by March," the official told Moneycontrol.

Typically, such investigations involve a range of corporate offences, including alleged fraudulent activities, mismanagement or non-compliance with statutory obligations.

The Economic Survey 2025 stressed the need for deregulation and enhancing the ease of doing business to attract investment and foster entrepreneurship.

In her Budget speech, which came a day after the Economic Survey, finance minister Nirmala Sitharaman said, "Our Government will now bring up the Jan Vishwas Bill 2.0 to decriminalise more than 100 provisions in various laws."

The official said the western region, which includes the financial  capital of Mumbai and neighbouring Pune, has the highest number of these pending cases and north the least.

The ministry oversees corporate regulation through a network of regional directors (RDs) and RoCs. The country is divided into seven regions, each managed by an RD who supervises the RoCs — 22 of them —  in their jurisdiction.

The ministry aims to uphold corporate governance standards and bolster investor confidence by addressing these cases promptly, the official said.

When the MCA opens an investigation, it is managed by the respective RD and RoC, based on the company's registered location. A company registered in Mumbai, for instance,  will be under the jurisdiction of the western region RD and the RoC Mumbai.

The division of regions ensures that investigations and regulatory oversight are conducted efficiently.

The ministry has taken several steps to streamline the regulatory framework and enhance the ease of doing business in India, including the withdrawal of a substantial number of cases under the Companies Act, 2013.

It withdrew 14,247 prosecutions pending before various courts. Building on previous efforts, the ministry approved the withdrawal of an additional 7,338 prosecutions under the Special Arrears Clearance Drive-II in 2023. The move aimed to decriminalise compoundable offences, leading to a 21.86 percent drop in cases pursued by the Centre.

In October 2023, the ministry amended the Companies (Incorporation) Rules, 2014, removing the imposition of costs while processing applications for shifting registered offices.

The move aimed to simplify procedures and reduce compliance burdens on companies.

Through the Companies (Amendment) Act, 2015, the ministry provided exemptions to private companies by removing the requirement for minimum paid-up capital. This change was intended to encourage entrepreneurship and facilitate the incorporation of new businesses.