Registration of 86 shell companies in Kerala cancelled
New Delhi: In a major crackdown, the Ministry of Corporate Affairs has invoked the Section 248(1) of the Companies Act 2013 to cancel the registration of 86 dormant or shell companies which were found to have not initiated any business activity within one year of incorporation.
Some of them have been dormant on the economic or business front for two consecutive financial years. In a similar move, the registration of 50 companies registered at Delhi and Haryana and another 12 at Kolkata were also cancelled.
Notices were served to 5479 companies in the state two months ago after the task force at the ministry level found that several of these companies were being used as shell entities for money laundering. While some companies responded to the notices on non-filing of returns, some others requested that their licenses be suspended.
Several thousands of domestic shell companies have been found to exist in the country to route illicit cash. A special team at the PMO is also involved in the crackdown. Several shell companies with suspicious track record has been pulled up and served show-cause notices at Telangana-Andhra Pradesh (13,500), Maharashtra (19,000) and Tamil Nadu (1634).