Shell Company Crackdown

The ministry is probing deposits of over $1 billion made by around 20,000 companies during the cash ban last year, while its Serious Fraud Investigation Office is investigating 1,505 companies for allegedly violating the Companies Act.

Among the top offenders of companies whose bank accounts were blocked last month by the government for illegal transactions and tax evasion was one that had more than 2,000 bank accounts, making it tough for tax officials to track transactions.

As many as 4.5 lakh directors may face disqualification for their association with shell companies, Union minister PP Chaudhary said today as the government steps up its fight against the black money menace.

More such names will be published soon as the government has already identified over 1.06 lakh directors for their association with shell firms which are either yet to commence any business or have failed to submit their financial statements or annual returns for three straight years.

Under a new pact, tax authorities will now relay audit reports of corporates and information from their I-T returns along with PAN data to the ministry of corporate affairs.

As part of efforts to fight illicit fund flows and tax evasion, regulators have struck off the names of over two lakh companies.

The latest move comes close on the heels of the corporate affairs ministry cancelling the registration of 2.09 lakh companies that have not been carrying out business activities for a long period.

The bank accounts of 209,032 suspected shell companies have been frozen as part of a crackdown on illegal transactions and tax evasion, the Finance Ministry said on Tuesday

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.

Last month, the authorities ordered nearly 200,000 shell companies to be shut down.

Out of the 1,62,618 companies that have been struck-off the register, the registration of 33,000 were cancelled by RoC (Mumbai).

The government is clamping down on shell companies in efforts to deal with the black money menace.

On a day after India's biggest tax reform came into force, Prime Minister Narendra Modi on Saturday vowed to continue the crackdown on black money and announced that the government cancelled registration of one lakh firms over the last 48 hours and was probing 37,000 shell companies on suspicions of funneling black money.

The Enforcement Directorate had conducted nation-wide raids on April 1 in 16 states with sleuths swooping down at market places, business centres, residential premises and even houses put up on rent.

Weeks after the Prime Minister Narendra Modi's office ordered a crackdown on shell companies used to launder money, the Enforcement Directorate on Saturday carried out nationwide searches across 100 locations targeting nearly 300 shell companies. Sources said Saturday's operation across more than a dozen states was a direct fallout of the coordina...

The ministry is probing deposits of over $1 billion made by around 20,000 companies during the cash ban last year, while its Serious Fraud Investigation Office is investigating 1,505 companies for allegedly violating the Companies Act.

Among the top offenders of companies whose bank accounts were blocked last month by the government for illegal transactions and tax evasion was one that had more than 2,000 bank accounts, making it tough for tax officials to track transactions.

As many as 4.5 lakh directors may face disqualification for their association with shell companies, Union minister PP Chaudhary said today as the government steps up its fight against the black money menace.

More such names will be published soon as the government has already identified over 1.06 lakh directors for their association with shell firms which are either yet to commence any business or have failed to submit their financial statements or annual returns for three straight years.

Under a new pact, tax authorities will now relay audit reports of corporates and information from their I-T returns along with PAN data to the ministry of corporate affairs.

As part of efforts to fight illicit fund flows and tax evasion, regulators have struck off the names of over two lakh companies.

The latest move comes close on the heels of the corporate affairs ministry cancelling the registration of 2.09 lakh companies that have not been carrying out business activities for a long period.

The bank accounts of 209,032 suspected shell companies have been frozen as part of a crackdown on illegal transactions and tax evasion, the Finance Ministry said on Tuesday

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.

Last month, the authorities ordered nearly 200,000 shell companies to be shut down.

Out of the 1,62,618 companies that have been struck-off the register, the registration of 33,000 were cancelled by RoC (Mumbai).

The government is clamping down on shell companies in efforts to deal with the black money menace.

On a day after India's biggest tax reform came into force, Prime Minister Narendra Modi on Saturday vowed to continue the crackdown on black money and announced that the government cancelled registration of one lakh firms over the last 48 hours and was probing 37,000 shell companies on suspicions of funneling black money.

The Enforcement Directorate had conducted nation-wide raids on April 1 in 16 states with sleuths swooping down at market places, business centres, residential premises and even houses put up on rent.

Weeks after the Prime Minister Narendra Modi's office ordered a crackdown on shell companies used to launder money, the Enforcement Directorate on Saturday carried out nationwide searches across 100 locations targeting nearly 300 shell companies. Sources said Saturday's operation across more than a dozen states was a direct fallout of the coordina...