Mumbai, Aug 14 (PTI) Chief Minister Devendra Fadnavis on Friday defended Maharashtra’s position over the closure of more than 36,000 companies, stressing that 76 per cent of such firms were defunct, meaning they had never become operational.
Maharashtra continues to have the highest number of active companies in the country, he asserted.
The remarks came in response to concerns raised by NCP (SP) chief Sharad Pawar about the closure of 36,211 private companies in Maharashtra in the last five years and reports that 20 companies in the Chakan industrial area in Pune had decided to relocate over problems related to traffic congestion, pollution, water, power and poor roads.
The Opposition has also attributed the data on company closures, shared in the Lok Sabha on August 10, to what it claimed was excessive government interference, widespread corruption, and an increasingly unfavourable business environment.
Fadnavis said in a statement that the data provided in Parliament should be viewed in its proper context and that detailed information was available on the Ministry of Corporate Affairs’ website.
Of the companies that are closed, 76 per cent are defunct companies. Defunct means dysfunctional — companies that never actually started operations, Fadnavis said.
He said India has more than 31 lakh registered companies, of which around 21 lakh are currently active. The number of active companies in the country has increased from 6,78,768 in 2015-16 to 21,17,747 now, representing more than a three-fold increase over the past decade, he said.
Maharashtra continues to have the highest number of active companies in the country, with 3,96,211 as of June 3, 2026, followed by Delhi with 2,72,342 and Uttar Pradesh with 1,85,982, Fadnavis said.
Barring the COVID period, he said, an average of 20,000-22,000 companies are closed every year. Of these, around 76 per cent are defunct companies, 12 per cent are cases of amalgamation and two per cent have been dissolved.
In 2019-20 alone, the Ministry of Corporate Affairs undertook a special drive and struck off around 6 lakh companies, he said, adding that the number of inactive companies being struck off was substantially higher than companies actually shutting down their operations.
Fadnavis also said around one lakh new companies are registered in India every year, and Maharashtra remains at the top in new registrations.
In 2025-26, Maharashtra registered 41,525 new companies, followed by Uttar Pradesh (27,494), Delhi (20,272), Karnataka (17,857), Telangana (17,300), Tamil Nadu (17,024), Gujarat (14,666) and West Bengal (10,598), he said.
On Pawar’s concerns over Chakan, Fadnavis acknowledged that the industrial area was facing problems and said Industries Minister Uday Samant had been directed to look into them.
A meeting involving the district administration, Public Works Department, Pune Metropolitan Region Development Authority (PMRDA), National Highways Authority of India (NHAI), Zilla Parishad and other agencies was held on August 12 on the initiative of the Maharashtra Industrial Development Corporation, he said.
After hearing all the problems, both a short-term and a long-term plan have been finalised to find solutions. Our effort will be to ensure that not a single industry leaves Chakan, he added.
In a statement on Thursday, Pawar had said the proposed relocation of around 20 companies from Chakan, employing more than 2,000 workers, was a serious issue and urged the government to urgently improve infrastructure in Chakan, Talegaon and other industrial areas.
The NCP (SP) chief called for immediate measures to address potholes, roads and traffic congestion and better coordination among MIDC, PMRDA, PWD and NHAI. He sought a high-level meeting with entrepreneurs and a special single-window mechanism to resolve their problems.
Pawar also questioned whether the government had information about the number of jobs lost following the closure of the 36,211 companies and whether affected workers had received adequate compensation.
Calling Maharashtra an industry-friendly state, he said that industries relocating or shutting down due to lack of infrastructure was not a matter of pride.
In his response, Fadnavis said, “You are a sensible and senior leader who always thinks of the state’s welfare. So, there should be no misunderstanding in your mind. Of the companies that closed, 76 per cent are defunct,” he said.
The Corporate Ministry shared the company closure data in Parliament in response to a question raised by Shiv Sena (UBT) MP Rajabhau Waje. It said the private companies were liquidated, dissolved or struck off over the last five years.
Citing the figures, Waje had told reporters that the closure of more than 14,000 companies in business services and nearly 6,500 in manufacturing was particularly alarming as these sectors generate substantial employment.
Fadnavis, however, maintained that Maharashtra continues to lead in attracting investment.
“Maharashtra is industry-friendly and will remain so. We have consistently been number one in foreign investment and will remain number one,” he said.
Meanwhile, Deputy CM Sunetra Pawar, who is the guardian minister of Pune district, said in a statement that problems in the Chakan industrial area will be taken up on priority.
She said a meeting would soon be held with industrialists from Chakan and officials to discuss the issues and work out solutions. The deputy CM also spoke to representatives of industrial associations. PTI MR NR
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