Massive crackdown on money laundering shell companies in 100s of locations

The Enforcement Directorate in what may be a massive exercise against money laundering, raided hundreds of locations in 16 cities in order to crackdown on shell companies. The raids were launched by the ED from the early hours of Saturday.

Various teams comprising of 300 officials raided the premises in cities like Delhi, Chennai, Kolkata, Chandigarh, Patna, Ranchi, Ahmedabad, Bhubaneswar and Bengaluru to name a few.

Some of the companies which were raided had links to prominent politicians like YSR Congress chief Jagan Mohan Reddy, NCP leader Chhagan Bhujbal and a controversial Noida bureaucrat Yadav Singh. Incidentally Reddy, Bhujbal have been under investigation for money laundering in the past.

- Advertisement - - Article resumes -

The companies which fit into ED and other agencies definition of Shell Companies are:

Companies setup using nominal paid up capital, high reserves and surplus on account of receipt of high share premium, investment in unlisted companies, no dividend income, high cash in hand, private companies as majority shareholders, low turnover and operating income, nominal expenses, nominal statutory payments and stock in trade and minimum fixed asset.

ED believes that these companies are in violation of the the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA) acts.

In the past three years the agencies have identified 1155 shell companies which they believe were used to carry out dubious transactions worth over 13,300 crores. This report also indicated that the Saturday’s raids were based on authorities suspecting over 550 people of laundering 3,900 crore after demonetization via such companies.

This action by the ED stems from the government’s announcement of cracking down on shell companies on 10th February. The ED was one of the intelligence agencies and ministries which were empowered under a special task force set up under the direction of the PMO. The govt has set up a target of prosecuting 10 lakh of such firms and also to prepare an Aadhaar-based KYC registry to check future instances of money laundering by them.

This expedition of searching for shell companies was largely successful as the authorities found a whooping 700 shell companies registered at a single address in Mumbai.

Contributor at OpIndia.com,
Wish to write a great trilogy someday!

Share and Support:
Support OpIndia by paying for content

Most read articles recently

Congress friendly journalist wishes death upon BJP Delhi spokesperson Tajinder Bagga

During the run-up to Gujarat assembly elections last year, Trivedi was caught spreading morphed images with Amit Shah's fake quotes on Patidars

BJP has lost the digital and social media edge, but it is not too late to recover

Talented supporters are BJP's key asset. If things start moving now BJP will be able to recover the edge lost by 'IT cell'. The time to act is now.
Modi government vindicated, SC says Rafale Deal clean

SC verdict on Rafale deal: Read scathing comments made by Court while dismissing petitions for inquiry

Supreme Court dismissed petitions for an enquiry into Rafale deal pricing, offset partner selection and procurement procedure. Read scathing observations

Activist opposing Akshaya Patra’s mid-day meal contract thinks ‘Brahmins obstruct India’s development’

The Akshaya Patra has come under criticism recently for not including onion and garlic in its mid-day meals for school children.

For all his angst against Adani, Rahul Gandhi chose Kamal Nath who rallied behind Adani for power plant in Chhindwara

Kamal Nath is believed to be close to Gautam Adani, whom Rahul Gandhi has frequently accused of being a 'crony capitalist'

Pro-Congress troll resumes fake news website, makes outlandish claims on Rafale targeting Modi

Abhishek Mishra has been associated with the website which spreads fake news and Islamist propaganda

‘Will not develop areas which did not vote for me’: Rajasthan Congress MLA shortly after winning

Rajender Singh Bidhuri fought and won a close battle against BJP MLA Suresh Dhakad with a margin of 1661 votes.

Mumbai Police teaches a lesson in humility to ‘special’ Sonam Kapoor

Actor Dulquer Salman clarified that he and Sonam were sitting inside a car that was rigged to a truck and hence were not breaking traffic rules.

Double whammy for Congress in court: After Rafale verdict, Rakesh Asthana’s appointment as CBI special director upheld by SC

The Supreme Court's verdict is being seen as the second major embarrassment for both the Congress party and Prashant Bhushan, as the Supreme Court had earlier rejected a plea on the issue of a probe concerning the Rafale deal.

Arun Jaitley rejects JPC demand on Rafale, says “deaf will never receive an answer, they can’t hear it”

Arun Jaitley called for an apology from Rahul Gandhi for his lies on Rafale deal

Latest articles

Connect with us

125,671FansLike
97,957FollowersFollow
6,119SubscribersSubscribe

Don't miss these