In massive crack down on shell companies and Benami transaction, the Modi Government has cancelled the licence of 2,09,032 Shell Companies and disqualify 1 Lakh Directors of the companies who were either found to be involved in Benami transaction and black money generation.
The ministry of Corporate affairs which took the Massive job of cleaning the dubious companies demanded the directors to submit their transaction detail after which they found that many companies had not carried out Business activity for a long Period and there were no record of money inflow.
The government took the action against the director under the section 164(2), which provides that such persons will not be to be re-appointed as a director of that company or appointed in any other company for five years from the date of default by the company concerned.
The companies were also immediately de-listed under section 248 of the companies Act and the bank account has been seized. The Government has not just disqualified the directors, but has also made the names of 55,000 directors’ public to warn public about their activities.
The Ministry of Corporate affairs said that totally 11 Lakh companies were under scanner and 2,09 lakh companies have de-listed and investigation of another 2 Lakh companies is under process.
Profile director such as their background antecedents and their role in the operation function/ functioning of these companies are also being complied in collaboration with the enforcement agencies and money laundering activities under the aegis of these companies are also under the scanner the ministry said.
The professionals, charted accountants, company’s secretaries and cost accountants associated with the defaulting companies are also under scanner and ministry is preparing the list of people involved in dubious acts and fraud activities.
The fight against black money shall be incomplete without breaking network of shell companies. Possibility of using the shell companies of laundering the black money cannot be undermined, said the Minister of state for corporate affairs PP Chaudhary.
It is also said that investigation have revealed that many of the companies have political connections and few of them belong s to politicians and corporate groups which were used to convert black money to white.
The ministry said very soon the names of the politicians and corporate groups will be made public. Over 24,000 fake shell companies were identified in Chennai alone, another 12,000 each from Ahmadabad and Ernakulum.
The government has made entire process transparent and has listed out the fraudster companies of each other in separate files. The government definitely needs to be congratulated of their serious action fraud shell companies which had become mafia of black money conversion and Benami transaction.