Business/Economy

Above 2 lakh companies struck off registration: Government

Above 2 lakh companies struck off registration: Government

As the government deepens its crackdown against black money, bank accounts of more than 200,000 shell companies have been frozen after they were struck off the Register of Companies. Banks were urged by the government to step up diligence while dealing with companies in general.


Financial Services Secretary Rajiv Kumar said, “Also, Banks will flag such companies which are not obeying with the mandatory (regulatory) filings. This step will confirm compliance in the corporate sector.”
Prime Minister Narendra Modi, in his Independence Day speech, had said that the drive in contradiction of black money had led to the detection of a vast number of shell companies.


Noting that up to 400 bogus companies were found to be operating from a single address, PM in his Independence Day speech said, “Over 3 lakh companies, following demonetisation, have been found which are nothing but shell companies.” Section 248 of the Companies Act permits the elimination of firms from the register on numerous grounds, including having been inactive for lengthy periods.