The existing Directors and Authorized Signatories of such struck off companies will now become ex Directors or ex Authorized Signatories. — Ministry of Finance (@FinMinIndia) 1504609478000

These individuals will not be able to operate bank accounts till such companies are legally restored by an order of the NCLT. — Ministry of Finance (@FinMinIndia) 1504609575000

NEW DELHI: The Finance Ministry on Tuesday said that the operation of bank accounts of more than 2 lakh companies which have been 'struck off' from the Register of Companies (RoC) has been restricted.On Monday, the Times of India had reported that so far, names of 2.1 lakh companies have been struck off for not filing returns and not completing other formalities related to compliance. The report suggested that the action was taken after notices were served to 2.97 lakh companies that had failed to respond to show-cause notices.An official statement released by the Ministry of Finance said that as many as 2,09,032 companies have been struck from the the RoC and that the existing directors and authorised signatories of such companies will now become ex directors or ex authorised signatories. It further said that the accounts of these companies will not operate till they are legally restored by the National Company Law Tribunal (NCLT).The verified Twitter handle of the ministry confirmed the same.The Department of Financial Services has instructed all banks to take immediate steps to put the restriction into place, the official statement said.The step maybe seen as a continuation of the government's crackdown on shell companies which are allegedly used as conduits for illicit fund flows and tax evasion.In a word of warning to other companies, the statement said that banks have been asked to employ 'enhanced diligence while dealing with companies' and keep a watch on companies which are defaulting in filing financial statements or annual returns.