MCA Amends Rules for Strike-Off of Government Companies, New Indemnity Norms Notified

Last updated: 02 January 2026


Quick Summary
The Ministry of Corporate Affairs (MCA) has introduced new rules affecting how government companies can be struck off the register. These amendments, effective immediately, require an indemnity bond for government companies, including subsidiaries. The bond must be provided by an authorised representative from the relevant government department.

The Ministry of Corporate Affairs (MCA) has notified amendments to the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, introducing a significant procedural change for Government companies seeking strike-off under Section 248 of the Companies Act, 2013.

The amendment has been notified vide G.S.R. 940(E) dated December 31, 2025, and comes into force with immediate effect upon its publication in the Official Gazette.

MCA Amends Rules for Strike-Off of Government Companies, New Indemnity Norms Notified

Official copy of the notification is as follows

MINISTRY OF CORPORATE AFFAIRS
NOTIFICATION
New Delhi, the 31st December, 2025

G.S.R. 940(E). - In exercise of the powers conferred by sub-sections (1), (2) and (4) of section 248 read with section 469 of the Companies Act, 2013 (18 of 2013), the Central Government hereby makes the following rules further to amend the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, namely:-

1. Short title and commencement. - 

(1) These rules may be called the Companies (Removal of Names of Companies from the Register of Companies) Amendment Rules, 2025.
(2) They shall come into force on the date of their publication in the Official Gazette.

2. In the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, in rule 4, in sub-rule (3), after the proviso, the following proviso shall be inserted, namely: 

"Provided further that in case of any other Government Company, including its subsidiaries, the indemnity bond in Form STK-3A, in respect of one or more directors appointed or nominated by the Central Government or State Government, shall be given by an authorised representative not below the rank of Under Secretary or equivalent, in the administrative Ministry or Department of the Government of India or the State Government, as the case may be, on behalf of the Company.".

[F. No. 1/28/2013-CL-V(Part-III)]
BALAMURUGAN D., Jt. Secy.

Note: The principal rules were published in the Gazette of India, Extraordinary, Part II, Section 3 of Sub-section (i), vide number G.S.R. 1174(E), dated the 26th December, 2016 and subsequently amended, vide notification numbers G.S.R 355(E), dated the 12th April, 2017, G.S.R 350(E), dated the 8th May, 2019, G.S.R 420(E), dated the 29th June, 2020, G.S.R. 436(E), dated the 9th June, 2022, G.S.R. 658(E), dated the 24th August, 2022, G.S.R. 298(E), dated the 17th April, 2023 and G.S.R. 354(E), dated the 10th May, 2023.


The MCA has amended the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016, specifically concerning the strike-off process for government companies.

The amendments came into force immediately upon their publication in the Official Gazette.

The key change involves new indemnity norms for government companies seeking strike-off under Section 248 of the Companies Act, 2013.

For government companies and their subsidiaries, the indemnity bond must be provided by an authorised representative, not below the rank of Under Secretary or equivalent, from the administrative Ministry or Department.

The indemnity bond is to be provided in Form STK-3A.




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