Twitter
Advertisement

Trouble for black money hoarders: Government asks states to identify assets of around 2.1 lakh shell firms

P.P Chaudhary expressed his confidence that as the details of land records had been digitalized across the country there won't be much difficulty to provide details to the district authorities as well as to the Centre.

Latest News
article-main
FacebookTwitterWhatsappLinkedin

The Centre has asked states to identify and track assets belonging to 2.1 lakh shell companies that were earlier struck off by the government. 

Minister of state for law, justice and corporate affairs P P Chaudhary told state government representatives on Thursday that the process of identification of such properties needs to be completed at the earliest and information be shared with the corporate affairs ministry as soon as possible. 

Speaking at a meeting to discuss follow-up action by states on properties belonging to companies struck off from the registrar of companies by the Centre under provisions of the Companies Act, the minister expressed his confidence that as the details of land records had been digitalized across the country there won't be much difficulty to provide details to the district authorities as well as to the Centre.

The government earlier this year struck off names of over 2 lakh companies from register of companies for failing to comply with regulatory requirements and action has been initiated to restrict operations of their bank accounts.

Continuing its crackdown on shell companies which are allegedly used as conduits for illicit fund flows and tax evasion, the government said the directors of deregistered firms would not be able to operate the bank accounts till these entities are legally restored. "The names of 2,09,032 companies have been struck off from the register of companies under Section 248 (5) of the Act. The existing directors and authorised signatories of such struck-off companies will now become ex-directors or ex- authorised signatories," an official release said. Section 248 of the Companies Act -- which is implemented by the corporate affairs ministry -- provides powers to strike off names of companies from the register on various grounds including for being inactive for long.

The Department of Financial Services, through the Indian Banks Association, has advised banks that they should take immediate steps to put restrictions on bank accounts of such struck-off companies. "In addition to such struck-off companies, banks have also been advised to go in for enhanced diligence while dealing with companies in general," the release said. A company even having an active status on the corporate affairs ministry website but defaulting in filing of its due financial statements or annual returns, among others, "should be seen with suspicion as, prima facie, the company is not complying with its mandatory statutory obligations".

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
    Advertisement

    Live tv

    Advertisement
    Advertisement