700 shell firms under Enforcement Directorate radar, searches at several locations

Teams of ED officials are carrying out searches at several of the top business hubs in the country in New Delhi, Mumbai, Chennai, Bengaluru, Bhubaneshwar, and Kolkata.

The Enforcement Directorate is carrying out searches at over 100 locations across the country in a massive drive against shell companies. Close to 700 firms are under the ED's radar and searches are being conducted in over 16 states. Saturday's raids are the biggest crackdowns ever by the agency.

Over 700 companies came under the ED's radar after it found dubious and illegal transactions carried out during demonetisation period. The crackdown is part of the government's intent to curb black money shell companies that are used by hoarders and legally operating business houses to launder black money into white.

Shell companies act as entities that carry out transactions to benefit individuals and companies that do not want to reveal their identities. Teams of ED officials are carrying out searches at several of the top business hubs in the country in New Delhi, Mumbai, Chennai, Bengaluru, Bhubaneshwar, and Kolkata.

Searches are being carried out under provisions of the Prevention of Money Laundering Act and the Foreign Exchange Management Act. The searches are being led by a special task force that was created by order of the Prime Minister's Office. An official statement on the searches are awaited and are expected to be made only after raids conclude.

OneIndia News