Govt strikes off nearly 4 lakh shell companies during last three years: Union Minister Anurag Thakur

Business
Typography

The term shell company normally refers to a company without active business operation or significant assets, which in some cases are used for illegal purpose

The government undertaken a special drive to identify shell companies and thus struck off about 4 lakh such companies in the past three years, said Union Minister of State for Finance and Corporate Affairs Anurag Singh Thakur.

Based on non-filing of financial statements (FS) consecutively for two years or more, companies were identified and after following due process of law as provided under Section 248 of the Companies Act, 2013 read with the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016. Accordingly as many as 3,82,581 companies were identified ans struck off during the last three years.

Thakur was giving a written reply on the matter in the Rajya Sabha on Sunday.

The term “Shell Company” is not defined under the Companies Act. It normally refers to a company without active business operation or significant assets, which in some cases are used for illegal purpose such as tax evasion, money laundering, obscuring ownership, benami properties etc.

The Special Task Force set up by the government to look into the issue of “shell companies” has inter-alia recommended the use of certain red flag indicators as alerts for identification of shell companies.

All Comments