NEW DELHI: The executive's crackdown on "shell companies" has proven that around 35,000 of the two.24 lakh corporations, whose names were struck off, deposited over Rs 17,000 crore post the demonetisation drive, which was later withdrawn, elevating suspicion of wrongdoing.
In one case, an organization with a destructive opening balance on November 8, 2016, when Prime Minister Narendra Modi announced that Rs 500 and Rs 1,000 notes had been being junked, deposited and withdrew Rs 2,484 crore post-demonetisation.
In a statement, the finance ministry mentioned an organization had as many as 2,134 accounts and data for such entities were shared with enforcement government, together with the Central Board of Direct Taxes, Financial Intelligence Unit (FIU), division of economic products and services and the Reserve Bank of India for additional action.
Companies have additionally been recognized for inquiry/inspection/investigation beneath the Companies Act, 2013 and important action is underway, the release mentioned.
The executive has so far de-registered over 2 lakh corporations that had been inactive for two years or more and did not report the statutory reviews, whilst additionally disqualifying over 3 lakh administrators. "Preliminary enquiry has shown that over 3,000 disqualified directors are directors in more than 20 companies each, which is beyond the limit prescribed under the law," the federal government mentioned.
Separately, banks were asked to freeze the accounts of those corporations and proportion information with the federal government. So a ways, 56 banks have shared data involving 58,000 corporations with additional information expected to come in the coming months. Data launched on Sunday was a continuation of the craze witnessed previous.
The multi-pronged method is being pushed by a unique task power (STF) set up by the PMO, which is co-chaired by revenue secretary Hasmukh Adhia and corporate affairs secretary I Srinivas.
While a number of corrective measures to tighten regulations were initiated, the federal government is also starting up prison investigation beneath new provisions of the Companies Act.
"Under Section 447 of the Act, which defines fraud, stringent punishment, including imprisonment up to 10 years, is stipulated. Further, reference has been made to the ministry of finance to include it as a Scheduled Offence under the Prevention of Money Laundering Act," the federal government mentioned. Action in opposition to professionals who assisted those corporations is also being pursued.
In one case, an organization with a destructive opening balance on November 8, 2016, when Prime Minister Narendra Modi announced that Rs 500 and Rs 1,000 notes had been being junked, deposited and withdrew Rs 2,484 crore post-demonetisation.
In a statement, the finance ministry mentioned an organization had as many as 2,134 accounts and data for such entities were shared with enforcement government, together with the Central Board of Direct Taxes, Financial Intelligence Unit (FIU), division of economic products and services and the Reserve Bank of India for additional action.
Companies have additionally been recognized for inquiry/inspection/investigation beneath the Companies Act, 2013 and important action is underway, the release mentioned.
The executive has so far de-registered over 2 lakh corporations that had been inactive for two years or more and did not report the statutory reviews, whilst additionally disqualifying over 3 lakh administrators. "Preliminary enquiry has shown that over 3,000 disqualified directors are directors in more than 20 companies each, which is beyond the limit prescribed under the law," the federal government mentioned.
Separately, banks were asked to freeze the accounts of those corporations and proportion information with the federal government. So a ways, 56 banks have shared data involving 58,000 corporations with additional information expected to come in the coming months. Data launched on Sunday was a continuation of the craze witnessed previous.
The multi-pronged method is being pushed by a unique task power (STF) set up by the PMO, which is co-chaired by revenue secretary Hasmukh Adhia and corporate affairs secretary I Srinivas.
While a number of corrective measures to tighten regulations were initiated, the federal government is also starting up prison investigation beneath new provisions of the Companies Act.
"Under Section 447 of the Act, which defines fraud, stringent punishment, including imprisonment up to 10 years, is stipulated. Further, reference has been made to the ministry of finance to include it as a Scheduled Offence under the Prevention of Money Laundering Act," the federal government mentioned. Action in opposition to professionals who assisted those corporations is also being pursued.
35,000 shell firms deposited, withdrew Rs 17,000 crore post-demonetisation
![35,000 shell firms deposited, withdrew Rs 17,000 crore post-demonetisation]()
Reviewed by Kailash
on
November 06, 2017
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