Mumbai, August 14: Maharashtra Chief Minister Devendra Fadnavis has firmly rejected claims regarding the closure of 36,211 registered companies in the state over the past five years. Critics have suggested this indicates an industrial recession or a mass exodus of companies from Maharashtra. Fadnavis clarified that most of these firms were inactive and had been officially removed from records through the regular compliance process.
Responding to opposition criticism based on data presented by the Ministry of Corporate Affairs (MCA) in Parliament, Fadnavis stated that approximately 76% of the closed or deregistered companies were non-operational or ‘defunct.’ Many had either ceased operations or had never commenced business activities.
Reiterating Maharashtra’s leadership in the market, Fadnavis cited official statistics showing that the state boasts the highest number of active companies in the country, totaling 396,211. Maharashtra also leads in the formation of new companies.
He noted that comments on social media and interpretations by some media outlets have misrepresented these figures as evidence of widespread business closures or companies leaving Maharashtra.
In a detailed clarification posted on the social media platform ‘X’, Fadnavis emphasized that the figures regarding company closures should not be misconstrued as proof of industrial migration from Maharashtra. Instead, they primarily reflect the removal of inactive companies from official records as part of periodic compliance.
Fadnavis elaborated that among the closed or deregistered firms, 12% merged into larger corporate structures, 2% underwent formal liquidation, and the remaining 10% were removed for other regulatory reasons.
He stated, “Official data indicates that 76% of the closed registrations are defunct companies—entities that were non-operational or never initiated business. Twelve percent are companies that merged into larger corporate structures, while two percent were formally liquidated, and 10% were deregistered for other compliance reasons.”
Fadnavis highlighted the significant growth in active company registrations in India, noting that the number of active companies rose from 678,768 in 2015-16 to over 2,117,747 by 2025-26, marking more than a threefold increase.
This debate arose after Lok Sabha MP Rajabhau Waje revealed in Parliament that 36,211 private companies had closed in Maharashtra over the past five years, based on a response from Minister of State for Corporate Affairs Harsh Malhotra.
In response to the political interpretations of the mass company closures, Fadnavis explained, “The MCA regularly cancels registrations of inactive businesses. During special campaigns conducted nationwide in 2019-20, around 600,000 defunct companies were removed from the register. Thus, the significant decline in numbers is primarily due to the removal of inactive firms, not actual business migration. On average, 20,000 to 22,000 companies are deregistered annually across India.”
Fadnavis presented data related to company expansions, stating that the number of active corporate entities in India increased from 678,000 in 2015-16 to over 2.11 million by 2025-26.
He reiterated that the cancellation of company registrations is part of the MCA’s regular compliance process for inactive entities and should not be viewed as an indicator of active manufacturing units leaving the state.
In terms of active companies, Maharashtra ranks first in the country with over 396,000 firms. The state also leads in new company registrations, with 41,525 new companies registered in 2025-26.
Fadnavis noted that approximately 100,000 new companies are registered annually in India, with Maharashtra consistently at the forefront of new registrations. Following Maharashtra, Uttar Pradesh registered 27,494, Delhi 20,272, Karnataka 17,857, Telangana 17,300, Tamil Nadu 17,024, Gujarat 14,666, and West Bengal 10,598 new companies.
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