Amid the row over functionality of its database, the Ministry of Corporate Affairs is working on the Version 3 of MCA-21 database, which will address many current flaws in this online registry.
The new MCA-21 V 3.0 will have features like single source of truth, ease of doing business, e-adjudication, online compliance monitoring, all aimed at improving the authenticity and comprehensiveness of corporate data. It may also make the current registrar of companies (RoC) appear obsolete.
“A new version is coming. Version 3 will be a front-runner that would take a year from now to take shape as the process of selection of vendors could be started only by September after the formation of the new government. After that, tests and migration of the MCA-21 platform to a new version will start,” MCA sources said.
“The Version 3 will ease process of filing details as single source of truth will ensure that common information will automatically get updated over various forms. Second, the entire e-adjudication process will go online. This will ensure that nobody is required to go to a RoC. Everything will be on the front-end where entire e-adjudication and then online compliance monitoring would be done. So if anyone is not complying with the law, e-notice will automatically get generated and reach him”, the MCA sources added.
MCA 21 which was under revamp to a new version has found itself under a controversy over utility of the enrolled companies under the database. Government’s sample surveyor NSSO has doubted the veracity of these listed companies saying 21 per cent of these from MCA-21 database were “out-of-coverage” meaning they were either not operating. Another 12 per cent of companies could not be found putting a question mark on accuracy of GDP data that switched to verifying corporate data using MCA-21.
MCA-21 is an initiative under Ministry of Corporate Affairs storing all registered companies that file accounts online with MCA.
The government has already said there would not be any impact on the GDP data, saying that appropriate adjustments are made at aggregate levels.
This follows doubts over the GDP numbers after a survey report of NSSO showed over a third of the companies on the Ministry of Corporate Affairs’ MCA-21 database and used in computing India’s GDP could either not be traced or were wrongly classified or non functional.