MCA to withdraw over 7,300 prosecutions pending before courts

New Delhi: To improve ease of doing business, the ministry of corporate affairs (MCA) has introduced a special drive to withdraw 7,388 prosecution proceedings pending before various courts, the ministry said in a statement on Friday.

This would lead to a significant reduction of 22% in ongoing prosecutions being pursued by the Central Government.

Under a plan to reduce litigation, the government had withdrawal 14,247 prosecutions during a special drive in 2017, the statement said.

The ministry had set up a committee to undertake a thorough review of all the pending cases.

Long pending prosecutions for compoundable offences were identified for withdrawal.

Prosecutions related to serious non-compoundable offences such as cheating, fraud, acceptance of deposits, pending charges, etc. were not considered for withdrawal.

“This decisive step will also unclog the courts as well as foster the growth of corporate sector in India, while maintaining a healthy corporate governance framework,” the ministry said in the statement.

The move is led by the principle that the Central Government should not be a compulsive litigant. 

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Updated: 15 Jul 2023, 12:10 AM IST

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