Identified 2 lakh shell companies to face criminal action

New Delhi, October 24: The suppression against black money has been sharpened by the government. Under the revamped Companies Act, the identified shell companies will be facing criminal action. The companies have already been struck off the Registrar of Companies earlier this year.

 

In September 2017, over one lakh directors identified for disqualification under the companies act. While two lakh shell companies were struck off the registrar of companies. 13 banks provided information on post demonetization transactions by 5800 dubious companies.

 

In October 2017, the corporate affairs ministry is planning to impetrate strict provisions of section 447 of the new companies act which involves criminal proceedings. The companies mainly have disturbing activities after demonetization. Since last November before being stuck off these companies have altogether deposited a huge amount of Rs. 4,573.87 crore in their accounts and withdrawn an equally large amount of Rs 4,552 crore.

Since last year Government of India is putting great effort to stop illegal transactions, black money, shell companies. Against this backdrop, it is significantly important that Government of India has received vital information from 13 Banks regarding the bank account operations and post-demonetization transactions of some of the 2,09,032 suspicious companies. The companies have already been struck off the Register of Companies earlier this year.

A shell company is active with inactive business operations. These corporations are not all necessarily illegal but are used illegitimately such as a startup can use the business firm as a source to raise funds.