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Government strikes off 3.82 lakh shell companies

by BQ News Bureau
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The Government has undertaken a special drive for identification and strike off shell companies. Based on non-filing of Financial Statements (FS) consecutively for two years or more, companies were identified and after following due process of law as provided under Section 248 of the Companies Act, 2013 read with the Companies (Removal of Names of Companies from the Register of Companies) Rules, 2016,  a total of 3,82,581 companies were struck off in the last three years, said Anurag Singh Thakur, Union Minister of State for Finance and Corporate Affairs in Rajya Sabha recently.

The term “Shell Company” is not defined under the Companies Act. It normally refers to a company without active business operation or significant assets, which in some cases are used for illegal purpose such as tax evasion, money laundering, obscuring ownership and benami properties, he added.

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