New Delhi, September 6: To prevent any kind of black money racket, bank accounts of 209,032 suspected shell companies have been frozen. The Department of Financial Services has advised all Banks that they should take immediate steps to put restrictions on bank accounts of such struck off companies. The banks have been advised to take immediate steps to put restrictions on bank accounts of struck-off companies.
Even the companies which have active status if has been defaulting in the filing of its due Financial Statement will be probed for being involved in huge amounts of suspect transactions. “This is a house cleaning exercise,” said Ved Jain, former president of accounting rule-maker Institute of Chartered Accountants of India.
In his Independence Day speech PM Modi said, “Post-demonetization, the reports from data mining astonishingly revealed that there is 3 lakh shell companies dealing in Hawala transactions.” He also added out of these companies, registration of 1.75 lakh companies have been canceled.
The Shell companies can create menace anytime by helping corporate houses to reduce cost and avoid the cost. This is a clear practice of forgery to country’s economy. To prevent this malpractice, ‘Task Force on Shell Companies’ was constituted in the earlier part of this year. The task force has taken several steps to put an end to the activities.