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Government in action! 40 thousand shell companies will be locked, why such a big action is being taken?

Highlights

The Register of Companies (RoC) has identified more than 40 thousand companies.
Out of this, 7,500 companies have been found only in Delhi and Haryana.
After the implementation of demonetisation in the year 2016, the government has intensified action on shell companies.

New Delhi. The central government is in the mood to take strict steps to rein in shell companies. The Corporate Ministry has planned to cancel the registration of 40 thousand more companies. Most of these companies are registered in Delhi and Haryana. The government keeps on taking action against these shell companies from time to time. Last year also, the Registrar of Companies had canceled the registration of thousands of companies.

According to the Economic Times, the corporate ministry is preparing to lock down companies whose business has been dormant for six months. Officials related to the case say that there is a possibility of promoting criminal activities like money laundering through these shell companies. People associated with this crime invest money in shell companies and transport it to other countries. There is a lot of use of black money in this.

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Where are most shell companies
The Company of Register (RoC) has identified more than 40 thousand companies who have canceled the registration. Out of this, 7,500 companies have been found only in Delhi and Haryana. An official said that usually the RoC prepares to lock those companies, then they are not doing any work for almost two years and are not giving their accounts. But, in this case the companies which have been inactive for 6 months have also been selected.

Speedy action after demonetisation
It has been said in the report that the government has intensified action on shell companies after the implementation of demonetisation in the year 2016. According to the Ministry of Corporate Affairs, there are about 23 lakh companies registered in the country, out of which only about 14 lakh companies are functioning. Statistics show that till now about 8 lakh companies have closed their business.

Dues will be recovered even after closure
Even though the government is preparing to close these shell companies, but the recovery from them will not be stopped. The official related to the matter said that even after locking the companies, the dues on their directors or the company will not be cleared and it will be recovered. Apart from this, if any transaction has taken place on behalf of the company, then its answer will also be sought from its director and representative of the company.

Tags: business news in hindi, Company, Modi government, Money Laundering

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