Modi govt cracks down on shell companies: 16,500 entities confirmed, another 80,000 under investigation

In a boost to the fight against black money and illicit fund flows, the government has identified more than 16,500 companies as ‘confirmed shell companies’, while it has also put another 80,000 under the suspect category.

The Ministry of Corporate Affairs (MCA) had constituted a task force on shell companies in February 2017, three months after demonetization. The task force has identified 16,537 confirmed shell companies on the basis of the information received from the various law enforcement agencies of the companies found to be involved in illegal activities.

The task force has also identified 80,670 suspected shell companies drawn up by SFIO using certain red flag indicators. “The Task Force has identified certain red flag indicators, which will be used to identify more shell companies,” informed the MCA statement.

- Advertisement - - Article resumes -

It includes officials from the Department of Financial Services, direct and indirect tax departments, Central Bureau of Investigation, Enforcement Directorate, SFIO, FIU-IND, RBI, SEBI, DG-GSTI and DG-CEIB.

The Modi government has decided to fight against black money generated from the corporate sector, especially cracking down non-serious companies and shell companies registered under the Registrar of Companies (RoC). The companies, which are suspected to have little business, but large amounts of fund flow, are typically classified as shell companies usually route illicit funds in a complex way back into the domestic economy.

The government seems to be seriously fighting against the black money. Last year the Enforcement Directorate had crackdown large number of shell companies involved in Money Laundering in more than 16 cities. These shell companies were linked to various political leaders like YSR Congress chief Jagan Mohan Reddy, NCP leader Chhagan Bhujbal and a controversial Noida bureaucrat Yadav Singh.

In another crackdown carried out by MCA in 2017-18, it had blacklisted more than 3,00,000 directors of various companies for defaulting on statutory compliance. These include the directors of shell companies which haven’t filed returns for the past 3 years. MCA has identified another 2,25,910 companies for being struck-off in 2018-19.

Last month, the MCA had released data in which almost 73,000 companies have been deregistered and have made to deposit more than Rs. 24,000 crore in bank accounts post demonetization. The Ministry document said that there are 68 companies are under investigation. The Serious Fraud Investigation Office (SFIO) is also probing 19 companies while the Registrars of Companies (RoC) are investigating 49 firms, it added. In another report, the data show that the direct tax collection post demonetization has increased by 15.3%, which amounts to the collection of Rs. 9.80 crores of direct tax alone.

It seems that the government has taken the issue of black money and illicit fund flows very seriously. Earlier, the Modi government intensified the crackdown on benami Transactions by announcing a reward scheme to clamp down on benami properties. Under this scheme, the person who passes on any specific information about Benami transactions will be rewarded up to Rs 1 crore.

Prime Minister Modi has taken a pledge to weed out all the black money in the country The present government has taken several steps like withdrawing of high currency values, from usage, enforcing strict measures to track illicit funds and other steps to eliminate the menace of black money from the system.


Share This Post and Support:
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.


Most read articles recently

NDTV suspends Deputy News Editor for celebrating Pulwama terror attack, may take further action

NDTV Deputy News Editor Nidhi Sethi suspended by the channel for her Facebook comment celebrating the Pulwama attack

Dear Gujarat Samachar editor, how do you live with yourself?

Gujarati daily's insensitive headline over Pulwama attack has got readers upset

Pakistan funded Islamic terrorist blows up 300 kgs of IED, actor brings ‘Hindu right wing’ argument to shield Pakistan

Jaaved Jaaferi refuses to hold Pakistan accountable for the attack, instead equates Hindus with Jaish Terrorists.

Congress IT Cell head shares NDTV’s half truth to discredit Vande Bharat Express, insensitively drags Pulwama terror attack

In a rush to discredit the success of India's fastest train 'Vande Bharat Express', Congress' Divya Spandana not only resorted to propagating fake news but also went on to pass some insensitive statements regarding the recent Pulwama terror attack

Congress supporting abusive troll claims Pulwama was an inside job by India

Sanjukta Basu is a very vocal Modi-hater and a bigot masquerading as a liberal feminist.

27 Revolutionary Guards killed by Pakistan supported terrorists: Iranian general warns Pakistan to act or face consequences

With Iran threatening retaliation after Prime Minister Narendra Modi assured Indians that there will be consequences, the signs appear to be ominous for Pakistan.

Navjot Sidhu sacked from Kapil Sharma Show after his shameful comments on Pulwama attack

Sidhu's non-stop praising of Pakistan and his going out of the way to hug General Bajwa during his visit in November was even criticised by his own Chief Minister, Captain Amarinder Singh. 

Assam: Assistant Professor at Icon Commerce College, Guwahati, suspended over objectionable Facebook post on Pulwama terror attack

Assam Police too has taken cognizance of a tweet that reported an objectionable post by Papri Banerjee who is an Assistant Professor of English at Icon Commerce College, Guwahati, Assam.
Image Source: twitter

Vajpayee govt was forced to release Masood Azhar because of hysterical media coverage, former AAP leader Ashutosh says

The veteran journalist who is currently running his own news portal in Hindi revealed that media coverage of the hijack incident created undue pressure on the central government and they had to accept the demands of the hijackers, which included the release of three terrorists.

Sonu Nigam, Kangana Ranaut blast those who preach peace to India after Pakistan sponsored terror attacks

"Why did they organise an event in Karachi in the first place when Pakistani artistes have been banned after Uri attacks", asked actress Kangana Ranaut over Shabana Azmi calling for a halt in the cultural exchange between the two countries.

Latest articles

Connect with us

136,689FansLike
109,576FollowersFollow
22,925SubscribersSubscribe

Don't miss these