Govt. to take ‘harsh punitive’ action against shell companies

TIL Desk/Business/New Delhi-In a major crackdown on domestic shell companies, the government today decided to take “harsh punitive” action, including freezing of their bank accounts used to launder money or evade taxes.

Following a review by the Prime Minister’s Office, a task force with members from regulatory ministries and enforcement agencies has been constituted to monitor action against “deviant” shell companies.

While the Serious Fraud Investigation Office (SFIO) has filed cases against 49 shell companies, as much as Rs 3,900 crore have been laundered by 559 persons with the help of 54 professionals. Also, Rs 1,238 crore cash has been deposited in shell or dormant companies, post demonetisation.

“There are about 15 lakh registered companies in India and only 6 lakh companies file their annual return. This means a large number of these companies may be indulging in financial irregularities,” a PMO statement said.