Hundreds of shell firms may face criminal action over unexplained deposits

The move comes after the government collected data on multiple accounts of 5,800 shell companies out of the over 200,000 that were struck off by the RoC

The noose around "shell companies" continues to tighten as hundreds of such entities could be facing criminal action soon. 

Hundreds of such entities that deposited unexplained high-value currency notes during the government's demonetisation drive or operated bank accounts after their names were struck off from the Registrar of Companies (RoC) could be facing criminal action under the Companies Act, the Times of India reported on Monday.

Citing sources, the national daily said that the Ministry of Corporate Affairs (MCA) plans to go after such entities by invoking provisions of Section 447 of the new Companies Act. Under the law, the