Companies considered to be fraudulent incorporations created as cover agencies for illegal financial activities have been struck off by the Ministry of Corporate Affairs. Many of these companies are completely legal entities that have only been struck off because they did not meet some basic obligations meant for corporate entities. The Directors of such companies are no longer allowed to do business or operate accounts in the name of the company, and they also become disqualified for a period of five years. They cannot form a new company or be appointed or reappointed in any other company in those five years. However, the detection and completion of some incomplete paperwork with the National Company Law Tribunal [NCLT] can be done to revive any legal company that has been struck off.
