Registration of over 1.62 lakh suspected shell companies cancelled: Govt informs Parliament

In an effective action against shell companies, the I-T department led to detection of more than 1,155 shell companies.

Minister of State for Finance Santosh Kumar Gangwar has informed Parliament that registrations of over 1.62 lakh companies have been cancelled for non filing of financial statements for the in the preceding two fiscals.

Highlighting that the government has taken several measures to identify shell companies and investigate their operations, Gangwar said notices have been issued to all those companies which were prima facie not carrying on any business or operation for a period of two immediately preceding financial years.

He said that names of 1,62,618 companies have been removed from the Register of Companies as of July 12, 2017.

In an effective action against shell companies, the I-T department led to detection of more than 1,155 shell companies which were used as conduits by over 22,000 beneficiaries, reported PTI.

"The amount involved in non-genuine transactions of such beneficiaries was more than Rs13,300 crore. Further, prosecution complaints have been filed against 47 persons found involved in wrongdoings through shell companies," Gangwar said in Parliament.

Prime Minister Narendra Modi, had on July 1, said that the government had cancelled registration of over 1 lakh companies in a single stroke and more than 37,000 shell firms have been identified for strong action.

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