I-T department identifies 30,000 shell companies in Kolkata

With the government intensifying its probe into unaccounted money post-demonetisation, the income-tax department and Serious Fraud Investigation Office (SFIO) have identified close to 30,000 shell companies in Kolkata.

Most of these companies have been used to launder unaccounted money after the note ban and some of them do not even possess a PAN (permanent account number), according to government sources.

Directors of 15,000 shell companies are also directors of 15,685 companies, all from Kolkata, sources said.

Over the last two weeks, the I-T department has started verification of suspicious transactions post-demonetisation through intensive door-to-door search operations, and Kolkata has emerged as major centre for the activity.

Across the country, about 1.8 million accounts in which high amounts were deposited after demonetisation have been identified by the government. The tax department has emailed holders of these accounts, seeking information on the source of deposits. In cases where the department was not satisfied with the response, or did not receive any response at all, it surveyed the premises over the last two weeks, said sources.

The I-T department has found that almost 90 per cent of shell companies are located in Kolkata. Subsequently, it planned a major crackdown against these companies. As a part of the investigation process last month, Arijit Pasayat, vice-chairman of the special investigation team appointed by the Supreme Court, visited Kolkata.

Kolkata is the preferred choice for setting up shell companies on account of easy availability of professionals, with an established network needed to set up a shell company.

The present surveys are being conducted by the directorate of income-tax investigation and the assessment wing.

“Large amounts of cash have been found to have been deposited in some shell companies in Kolkata,” said sources.

Earlier, the Prime Minister’s Office formed a task force to prevent the formation of shell companies. In a statement, it had said a sample survey found Rs 1,238 crore in cash was deposited in these entities during November-December. And that 559 beneficiaries laundered Rs 3,900 crore with the help of 54 professionals.