Govt plans to use artificial intelligence to weed out shell firms

Under the Companies Act, 2013, companies can be struck off the register if they do not file financial returns for a continuous period of three years

The Ministry of Corporate Affairs (MCA) is planning to scrutinise functioning companies to weed out shell firms. While there will not be any investigation, the registrar of companies will use artificial intelligence to keep a close eye on the numbers companies report.

The ministry has so far identified or taken action against dormant companies, those that have not filed statutory returns.

“We will use artificial intelligence to alert us if any suspicious activity takes place in a company,” a source in the know of the matter said. After the first alert, investigating agencies will be put on the job, officials said. Another