India Cancels 2.24 Lakh Suspected Shell Companies Post Demonetisation

The Ministry of Corporate Affairs on Sunday said it struck off around 2.24 lakh companies for remaining inactive for a period of two years or more, according to an official release from the ministry.

The ministry also put restrictions on operation of bank accounts and sale of movable and immovable properties on several of the suspected shell companies until they are restored. The decision was taken based on data received from 54 banks post demonetisation. The state governments have also been advised to block registration of such transactions.

A preliminary examination of 58,000 accounts involving 35,000 companies has revealed that over Rs 17,000 crore was deposited and withdrawn post demonetisation, the release said.

The release said, one company was found to have 2,134 accounts and one firm, which had a negative opening balance, deposited and withdrew Rs 2,484 crore post demonetisation.

The ministry disqualified 3.09 lakh directors on boards of companies that had failed to file financial statements and/or annual reports for three consecutive fiscals, as it is a mandatory requirement under the Companies Act, 2013.