Two lakh companies under MCA's radar for non-compliance of taxation laws

The Ministry of Corporate Affairs (MCA) on Saturday sent notices to around two lakh inoperative companies ordering them to terminate operations and de-register themselves from the MCA.

The decision comes after the aforementioned companies lagged behind in filing annual returns for several years.

During the demonetisation phase, the Income tax Department and the Enforcement Directorate revealed the involvement of certain Shell companies in converting black money into white through their accounts.

Owing to this, the Prime Minister's Office (PMO) setup a Task Force under the chairmanship of the Revenue Secretary Hasmukh Adhia to monitor the activities of these Shell Companies.

"Total 15 lakh companies are registered with the MCA. Six lakh out of them are filling Income tax return while the rest pose a potential threat of indulging in money laundering. The PMO has setup a task force to monitor shell companies. We are going to monitor every 15 days," said Adhia.