5,800 shell cos under scanner over deposits post note ban

Oct 07, 2017, 10:56 IST | Agencies

A govt statement says the data on pre-demonetisation accounts and transactions conducted during the cash ban period is 'startling'

Intensifying its crackdown on black money, the government yesterday said it has collated information about 5,800 shell companies, whose near zero-balance accounts saw nearly Rs 4,574 crore of deposits post note ban, and Rs 4,552 crore withdrawal thereafter.

Companies had multiple accounts with minuscule or negative balance as on November 8, 2016, which saw deposits and withdrawal running into several crores. File pic for representation
Companies had multiple accounts with minuscule or negative balance as on November 8, 2016, which saw deposits and withdrawal running into several crores. File pic for representation

'Vital information has been received from 13 banks regarding the bank account operations and post-demonetisation transactions of some of the 2,09,032 suspicious companies that had been struck off the Register of Companies earlier this year," the government said in a statement yesterday.

Last month, the government imposed restrictions on operations of bank accounts of over 2 lakh 'struck-off' companies. Terming it a "major breakthrough" in the fight against black money and shell companies, it said the first instalment of data pertains to about 5,800 companies - out of more than 2 lakh that were struck off - involving 13,140 accounts.

"Few of the companies have been found to have more than 100 accounts to their names. The highest grosser among these is a company having 2,134 accounts, followed by others having accounts in the range of 900, 300 etc," it said. The data on pre-demonetisation accounts and transactions conducted during the cash ban period is "startling", the government stated.

"However, from November 9, 2016 (after the announcement of demonetisation), till the date of their being struck off, these companies have altogether deposited a huge amount of Rs 4,573.87 crore in their accounts and withdrawn an equally large amount of Rs 4,552 crore," the statement said.

Companies had multiple accounts with minuscule balance as on November 8, 2016, which saw deposits and withdrawal of several crores. The accounts were thereafter again left as dormant with paltry balance.

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The GST Council yesterday made sweeping changes to give relief to small and medium businesses on filing and payment of taxes, eased rules for exporters and cut tax rates on over two dozen items.

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>> GST on e-waste has been slashed to 5% from 28%.

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Rs 4,574 cr
The deposits by the companies after the note ban

Rs 4,552 cr
The withdrawal after the note ban

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