Fadnavis Defends Industrial Record After 36,211 Company Closures in State

Chief Minister Devendra Fadnavis on Friday defended Maharashtra’s industrial performance following opposition criticism over the closure of 36,211 private companies in the state across the past five years, clarifying that 76 per cent of those firms were defunct and had never commenced operations.

The debate began after Union Minister Harsh Malhotra informed the Lok Sabha that 36,211 private companies in Maharashtra were liquidated, dissolved, or struck off in the last five years. Shiv Sena (UBT) MP Rajabhau Waje raised the figures to question the state's business climate, while NCP (SP) chief Sharad Pawar questioned whether the closures caused job losses and whether affected workers received compensation.

Responding to Pawar, Fadnavis said data from the Ministry of Corporate Affairs showed that 76 per cent of the closed companies were categorized as defunct. He added that approximately 12 per cent of the closures resulted from amalgamations, while around two per cent were formally dissolved.

Fadnavis stated that India currently has over 31 lakh registered companies, including around 21.17 lakh active entities, up from 6,78,768 in 2015-16. He noted that Maharashtra continues to lead the country with 3,96,211 active firms as of June 3, 2026, ahead of Delhi with 2,72,342 and Uttar Pradesh with 1,85,982.

Additionally, Fadnavis highlighted that Maharashtra led new company incorporations in 2025-26 with 41,525 registrations, outpacing Uttar Pradesh at 27,494 and Delhi at 20,272, maintaining that the state remains a leading destination for investment.