Over 100,000 directors to be disqualified for association with shell firms

Modi govt had warned that directors will be liable to jail terms if they tried to siphon off money from the firms' bank accounts

Over 100,000 directors will be disqualified for their association with shell companies, according to the government, as it steps up the fight against black money.

The latest move comes close on the heels of the corporate affairs ministry cancelling the registration of 200,000 companies that have not been carrying out business activities for a long period.

Besides, banks have been asked to restrict operations of these companies' bank accounts by their directors or their authorised representatives.

The ministry has "identified 1,06,578 directors for disqualification under Section 164(2)(a) of the Companies Act, 2013 as on September 12, 2017," an official release