According to data shared in the Lok Sabha by the Ministry of Corporate Affairs on August 10, over 36,000 private companies underwent liquidation, dissolution or were struck off in Maharashtra over the past five financial years. As reported by Rediff Moneynews, Shiv Sena (UBT) MP Rajabhau Waje questioned the government about these closures, revealing the alarming scale of business exits from the state. The data shows that business services accounted for the largest share at 14,613 companies (about 40% of total), followed by manufacturing, mining, quarrying and others at 6,582 companies, trading at 4,196 companies, and community, personal and social services at 3,361 companies. Additional sectors included construction at 2,356 companies, storage and communications at 1,336 companies, agriculture and allied activities at 1,178 companies, real estate and renting at 1,149 companies, finance at 1,012 companies, electricity, gas and water companies at 387 companies, and insurance at 41 companies.
According to Rediff Moneynews reports, Waje highlighted that the closure of more than 14,000 companies in business services and nearly 6,500 in manufacturing was particularly concerning as these sectors generate substantial employment. Maharashtra Congress spokesperson Sachin Sawant told PTI that political interference and corruption under the current regime are severely harming the state's economic trajectory. He emphasized that the closure trends directly contradict the rhetoric around utilizing India's demographic dividend, with the current regime having a lust for power rather than creating a conducive climate for enterprise. Sawant specifically criticized the government's alleged failure to create a conducive climate for enterprise, stating that the widespread corruption and unfavourable environment for the business sector are now reflected in the Lok Sabha data.
As reported by Rediff Moneynews, Mumbai City recorded the highest number of closures at 12,009 companies, followed by Pune at 6,433 companies and Thane at 4,704 companies. Other major districts included Nagpur with 1,478 companies, Nashik at 840 companies, Raigarh at 822 companies, and Aurangabad at 654 companies. Kolhapur recorded 429 companies, Ahmednagar 308 companies, Solapur 262 companies, Sangli 247 companies, Jalgaon 215 companies, Satara 196 companies, Bandra Suburban 172 companies, Nanded 169 companies, Latur 163 companies, and Amravat 151 companies. The 'Others' category accounted for 5,636 companies. Mumbai City, Pune and Thane together accounted for 23,146 companies, or nearly 64% of the Maharashtra total.
In its written response, the Centre stated that it does not maintain information on workers affected by the closure of private company operations. According to Rediff Moneynews, Waje pointed to the absence of data on workers affected by the closures, claiming that a labourer in Nashik district died by suicide last month after being sacked from a local company. The government also said no central information was maintained on any special rehabilitation package for workers affected by company closures or on proposed tax incentives and location-based benefits to attract genuine industries to rural and backward districts of Maharashtra. Where a company enters the corporate insolvency resolution process under the Insolvency and Bankruptcy Code, claims of employees and workers are adjudicated according to orders of the adjudicating authority, while in winding-up or liquidation cases, claims of workmen and employees are handled by the liquidator in accordance with applicable provisions.
As reported by Rediff Moneynews, opposition leaders have sharply criticized the Maharashtra government, claiming excessive government interference, widespread corruption, and an increasingly unfavourable business environment as key drivers pushing commercial and industrial activity away from the state. Sawant claimed that Maharashtra was lagging behind Karnataka in attracting foreign direct investment. Referring to Rashtriya Swayamsevak Sangh's chief Mohan Bhagwat's recent remarks that young people could not all seek jobs and some would have to start businesses, Sawant said data shared by the Corporate Affairs Ministry were at odds with that message. "Now, the Union government's own admission shows that what Bhagwat is preaching is not being implemented by BJP leaders at all," he said. Industry Minister Uday Samant had previously responded to a question by BJP MLA Sudhir Mungantiwar in the Maharashtra assembly, stating that the claim about over 12,000 small industrial units closing in four years was 'partially true' due to slowdown and various other reasons.
