The government Friday said it has struck off around 55,000 shell companies in the second phase of its efforts to curb illicit fund flows and some of the companies have been served notices and are under scrutiny.
The corporate affairs ministry has already struck off over 2.26 lakh firms for non-filing of financial statements or annual returns for a continuous period of two years or more as part of the first phase of the drive.
"So far as the shell companies are concerned, in the first phase, we have struck off around 2.26 lakh companies, which were not only non-compliant firms but also most of them were bogus. More than 400 companies were working from a one-room set up
"In the second phase, we have already struck off around 55,000 companies and more are on the anvil," minister of state for corporate affairs PP Chaudhary told reporters on the sidelines of the fourth edition of the annual convention of the Indo-American Chamber of Commerce here.
Asserting that the government does not want the corporate structure to be "misused" by way of money laundering, drug funding or any illegal actives, Chaudhary said that the Serious Fraud Investigation Office (SFIO) and other enforcement authorities are investigating the issue (shell companies) and taking action wherever required.
The government had earlier in June said that it has identified 2.25 lakh companies and 7,191 LLPs, which have not filed requisite financial statement for the financial year 2015-16 and 2016-17 and they may be struck off during the ongoing fiscal year.
The corporate affairs ministry is "scrutinizing" some of the companies to whom notices have been issued in the second phase, said Chaudhary.
"We have issued notices (to some of the companies) and we are examining their responses. After examining their responses, we will take action in accordance with the Companies Act," he added.
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