Government tightens scrutiny on Shell companies

New Delhi Sept 7: The Government has intensified its fight against black Money. Recently the government has deregistered 2.09 lakh shell companies and froze its accounts and 300,000 directors of shell companies have been back listed.

Finance ministry has issued orders that "if the director or authorized signatory of any delisted company tries to unauthorisedly make monetary transactions from its bank account, then he/she might attract imprisonment of at least six months which can further exceed up to 10 years."

The government has also said that "directors of these firms hadn't paid any tax for more than three years, so they would be disqualified from being appointed in any other company as Director and should vacate the office with immediate effect."

The government has also said that "all efforts are also being made to identify the actual beneficiaries and persons behind such shell companies."

Finally, the government has said that we are in process of identifying more shell companies and all persons involved in black money transactions may face the heat in the coming days.