Published: Sat, October 07, 2017
Markets | By Rosalie Gross

5800 shell cos under lens for suspicious deposits

5800 shell cos under lens for suspicious deposits

One shell company has been found to have been operating as many as 2,134 accounts while many others had in excess of 100 accounts each, according to the details submitted with the government by banks after an initial scrutiny of 5,800 of the nearly 2.1 lakh firms struck off from the register of companies as part of a crackdown against channels of black money after the note ban. However, data received from them pertain to only 13,140 accounts of about 5,800 of the 2.09 lakh de-registered rms.

"It needs to be re-emphasized that this data is only about 2.5 per cent of the total number of suspected companies that have been struck off by the government".

The government said about 6,000 companies had been caught in what looked like attempts to launder money in the wake of demonetisation, calling it the "tip of the iceberg", making it clear that more such wrongdoing would soon be unearthed.

The information-sharing by banks comes a month after the government said that names of over 2.09 lakh firms have been struck off from the register of companies for failing to comply with regulatory requirements and action has been initiated to restrict operations of their bank accounts. Some companies were found to be having multiple accounts in other banks.

"It is informed, after separating loan accounts, these companies were having a meagre balance of Rs 22.05 crore to their credit on November 8, 2016 (when demonetisation was announced)", the ministry said. In one of the banks, 429 companies with zero balance before demonetization, deposited and withdrew over Rs 11 crore and left a cumulative balance of Rs 4,200 crore at the time of their accounts being freezed.

More news: Chemist says VX traces found on both suspects in Kim murder

Similarly in the case of another Bank, more than 3000 such companies have been located. With loan accounts, there was a negative opening balance of ₹81 crore.

By November 8, transactions worth 13 crore rupees were made from these accounts, which increased to Rs 38,000 crore by the day of the ban.

The government also explained as to how these accounts came under scrutiny.

Several companies have been identified as running multiple accounts, some running into thousands, that carried out heavy transactions post-demonetisation, a perusal of the banks accounts of the 5,800 suspect companies has shown. "The accounts were thereafter again left as dormant accounts with paltry balance", the official release added. "The huge money game played by these companies may well be the tip of an iceberg of corruption, black money and black deeds of these and many more of their brethren", the statement added.

Investigative agencies have been asked to complete inquiries in a time-bound manner. Honest citizens of the country and the country can imagine a more clean future.

Like this: