The old & ageing tradition of corruption is under tremendous pressure as our Honorable Prime Minister is not resting on past laurels & constantly bringing those who are willing to make money by illegal means, under the scanner. The Modi Government is soon expected to monitor action against deviant shell companies. Shell companies are non-trading companies used as a vehicle for various financial maneuvers or kept dormant for future use in some other capacity. In a series of severe measures the Government decided to take serious & punitive action, which includes freezing of the bank accounts used to launder money & evade taxes. Following a review by the Prime Minister’s Office (PMO), a task force with members from regular ministries & enforcement agencies have been constituted to monitor action against ‘deviant’ shell companies.
While the Serious Fraud Investigation Office (SFIO) has filed cases against 49 shell companies, as much as Rs 3900 crore have been laundered by 559 persons with the help of 54 professionals. Also Rs 1238 crore has been deposited in shell or dormant companies after demonetization. “There are about 15 lakh registered companies in India & only 6 lakh file their annual return. This means that a large number of these companies may be indulging in financial irregularities,” a PMO statement said.
A task force, headed by revenue & corporate affairs secretaries, with members from various regular ministries & enforcement agencies has been set up to monitor actions so that the fraudulent companies & the people involved with these companies won’t have an easy time. Strong & decisive actions are expected to be taken against the deviant shell companies. These actions will include freezing of bank accounts, striking off the names of dormant companies, invocation of Benami Transactions (prohibition) Amendment Act, 2016. The regulatory ministry concerned will ensure disciplinary actions are initiated and professionals indulging in malpractices are strongly dealt with. People abetting or shielding such companies will also face legal consequences.
In the recently concluded meeting the appropriate ‘red flag’ indicators will be used to identify shell companies, and a database of such companies & their directors will be built by extracting information from various agencies. The database will also capture Aadhar numbers of Individual directors in the companies, the statement said. PM Modi has already made up his mind. He is certain about what his priorities are & post demonetization he seems to be in no mood to mellow down. The common man just needs to have a little patience. At least for now, the country is in safe hands.