1,500 firms under lens for being shell entities

In the first list of dabba companies, more than 500 listed entities and their directors have been affected

The Centre is trying to weed out more shell companies, after cracking down on more than 200,000 such entities in the first phase.

In the second phase, it has found 1,505 companies with attributes of dabba or shell companies. Sources in the ministry of corporate affairs (MCA) told Business Standard that various Registrars of Companies (ROCs) have been asked to investigate these entities under Section 206 of the Companies Act. Under this section, the ROCs will investigate the books of the companies identified by the ministry.

Action against these companies would be taken once all the RoCs submit their reports to the