Fadnavis Hits Back At Pawar Over Closed Companies Claim

Maharashtra Chief Minister Devendra Fadnavis has responded to NCP chief Sharad Pawar's concerns over the closure of thousands of companies in the state. Fadnavis argued that the figure of 36,211 companies being 'closed' does not reflect the actual industrial situation in Maharashtra.

The Chief Minister said that around 76 per cent of the companies listed as closed were “defunct” entities that had never commenced operations. He claimed that the data cited in Parliament had been presented without the wider context.

Fadnavis pointed out that more than 31 lakh companies are registered across India, of which around 21 lakh are currently active. The number of active companies in the country increased from 6,78,768 in 2015-16 to 21,17,747 as of June 2026, representing more than a threefold rise over the decade.

Maharashtra continues to have the highest number of registered companies in the country, with 3,96,211 companies as of June 3, 2026. Delhi has 2,72,342 companies, while Uttar Pradesh has 1,85,982.

On companies that were removed from the register, Fadnavis said that, excluding the Covid period, an average of 20,000 to 22,000 companies are closed every year. He claimed that 76 per cent of such cases involved defunct companies, while around 12 per cent were due to amalgamation and 2 per cent involved dissolution.

Fadnavis also highlighted new company registrations, saying around one lakh new companies are registered in India every year. Maharashtra continued to lead the country, with 41,525 new companies registered in 2025-26.

The Chief Minister's response came a day after Pawar raised concerns over industrial units allegedly planning to leave Maharashtra. Pawar had claimed that 20 companies in the Chakan industrial area had decided to relocate due to problems related to traffic congestion, pollution, and other issues.

Fadnavis' argument is that the figures should not be interpreted as evidence that an equivalent number of functioning businesses had shut down. He pointed to a special exercise undertaken by the Ministry of Corporate Affairs in 2019-20, during which around six lakh companies were struck off.

The debate over the closure of companies in Maharashtra has sparked a discussion about the state's industrial situation. While Pawar has raised concerns about the impact of company closures on the state's economy, Fadnavis has argued that the figures do not tell the whole story.

The issue is likely to continue to be a topic of debate in the coming days, with both sides presenting their arguments. However, one thing is clear: Maharashtra remains a hub for industrial activity, with the highest number of registered companies in the country.

In conclusion, the Chief Minister's response to Pawar's concerns has highlighted the need to look beyond the figures and consider the wider context. While the closure of companies is a concern, it is not necessarily a reflection of the state's industrial situation. Maharashtra continues to attract new businesses and remains a leader in the country's industrial sector.

The state's ability to attract new companies and create a conducive business environment will be crucial in determining its future growth. As the debate over company closures continues, it is essential to consider the facts and not jump to conclusions. The actual industrial situation in Maharashtra is more complex than the figures suggest, and it is crucial to look at the bigger picture.

The Chief Minister's argument that the figures should not be interpreted as evidence that an equivalent number of functioning businesses had shut down is a valid one. The fact that around 76 per cent of the companies listed as closed were defunct entities that had never commenced operations suggests that the situation is not as dire as it seems.

In the end, the debate over company closures in Maharashtra is a reminder that the state's industrial situation is complex and multifaceted. While there are concerns about the impact of company closures on the state's economy, it is essential to consider the wider context and not jump to conclusions. Maharashtra remains a hub for industrial activity, and its ability to attract new businesses will be crucial in determining its future growth.