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26 chartered accountants under ICAI scanner amid crackdown on shell firms

The corporate affairs ministry has deregistered more than 1.62 lakh defunct companies

Press Trust of India  |  New Delhi 

26 chartered accountants under ICAI scanner amid crackdown on shell firms

At least 26 have come under the scanner of the for allegedly helping shell companies, a senior official said.

The Institute of of (ICAI) is the regulator for accountancy professionals and can initiate disciplinary action against erring members.


"The role of (around) 26 with respect to their alleged links with are being looked into by the institute," President Nilesh Shivji Vikamsey told PTI.

As the continues its clamp down on in efforts to deal with the menace, many entities have come under the lens of various agencies, including the Serious Investigation Office (SFIO).

Vikamsey said reference about the 26 came from the SFIO and details about them are being collected.

The can initiate stringent disciplinary proceedings against members violating norms. The measures can include suspension and even cancelling their registrations.

are dubious entities that are generally used for laundering illegal funds.

However, the term 'shell company' is not defined under the companies law.

At ICAI's foundation day function on July 1, Prime Minister Narendra Modi had sought to send out a strong message against trying to help entities in dealings.

Till July 12, the corporate affairs ministry has deregistered more than 1.62 lakh companies that have not been carrying out business activities for long.

"The Registrars of Companies (RoCs) have removed 1,62,618 companies from the register of companies as on July 12, 2017, after following the due process under Section 248 of the Companies Act, 2013," Corporate Affairs Minister Arun Jaitley told the Lok Sabha on July 21.

Section 248 provides powers to the RoC to remove the name of a company from the register on various grounds, including that the entity was not carrying out any business for two preceding financial years.

Out of the 1,62,618 companies that have been struck-off the register, the registration of 33,000 were cancelled by RoC Mumbai.

First Published: Sun, July 23 2017. 16:32 IST
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