Modi Government May Crack Down on Shell Companies Which Deposited Unexplained Funds During Demonetisation News Desk
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Uttar Pradesh Police Seizes Demonetised Currency Worth Rs 80 Crore From Kanpur

New Delhi, January 17: The Uttar Pradesh Police has seized demonetised currency worth Rs 80 crore from Kanpur. The action came on the basis of input by the National Investigation Agency. The raid is underway and the exact amount of money would be ascertained later, sources said. The input suggested that some accused persons were […]

New Delhi, Oct 23: Central government is mulling to take action against those companies which deposited unexplained high-value notes during last year’s demonetisation. Hundred of shell-companies will also face the music who operated their bank accounts even after being delisted by the government.

The Ministry of Corporate Affairs is planning to take action against these companies under Section 447 of the revamped Companies Act, which deals with frauds citing public interest, TOI reported. The section enables the authorities to send a person involved in such fraud to jail for three to 10 years and also impose a fine equal to the value of the fraud committed.

The ministry had delisted over two lakh companies that had not filed their returns or who had dubious activities. The registrar of companies, which had taken the drastic action to rid the economy of shell companies, will conduct a thorough investigation into the matter and will examine the source of funds.

The revenue department and the ministry are working together to act against these companies that have little business and are used for money laundering. The authorities suspect that these companies might have been used to deposit illicit cash during demonetisation.

Data compiled by the revenue department says that Rs 4,600 crore was deposited through the bank accounts of 6,000 such companies– some companies had 900 bank accounts. Government agencies are trying to find the source of the funds routed through these companies.