Task force to monitor actions against shell companies

A meeting held on Friday in the Prime Minister's Office to review functioning of "shell companies" decided to set up a task force to monitor actions taken against deviant companies by agencies.

A press statement issued by the Finance Ministry said that harsh punitive actions will be taken against the deviant shell companies, including freezing of bank accounts, striking off names of dormant companies and invoking Benami Transactions (Prohibition) Amendment Act, 2016.

Shell Companies are those which do not conduct any operations and indulge in money laundering.

The statement said that the meeting with senior officers from various departments was held to review the functioning of shell companies in India to prevent money laundering and tax-evasion, especially in the context of unearthing black money after demonetisation.

It said there were about 15 lakh registered companies in India and only six lakh of these file their annual return.

"A task force with members from various regulatory ministries and Enforcement Agencies has been set up under the co-chairmanship of the Revenue Secretary and Corporate Affairs Secretary to monitor the actions taken against deviant shell companies by various agencies," it added.

The statement said that the concerned regulatory ministry will ensure that disciplinary actions are initiated against the professionals indulging in mal practices and abetting the entry operators of the shell companies.

--IANS

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