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MCA asks 200,000 companies to stop operations, get de-registered

The decision comes after these firms lagged behind in filing annual returns for several years

ANI  |  New Delhi [India] 

Hasmukh Adhia
Revenue Secretary Hasmukh Adhia

The (MCA) on Saturday sent notices to around 200,000 inoperative ordering them to terminate operations and de-register themselves from the MCA.

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

During the phase, the Department and the revealed the involvement of certain Shell in converting 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 to monitor the activities of these Shell Companies.

"Total 15 lakh (1.5 million) companies are registered with the MCA. Six lakh (600,000) out of them are filling return while the rest pose a potential threat of indulging in money laundering. The has setup a task force to monitor shell companies. We are going to monitor every 15 days," said Adhia.

First Published: Sat, April 29 2017. 13:21 IST