2.24 lakh inactive firms struck off

Following the action of striking-off of defaulting companies, restrictions have also been imposed on operation of their bank accounts, said a statement from the Corporate Affairs Ministry. It added that a preliminary inquiry on the basis of information received from 56 banks revealed that 35,000 companies involving 58,000 accounts saw suspicious transactions with over Rs 17,000 crore being deposited and withdrawn from those accounts post-demonetisation.

“In one case, a company which had a negative opening balance on November 8, deposited and withdrew Rs 2,484 crore post-demonetisation,” the statement said. “Apart from the restrictions on bank accounts, action has also been taken to restrict sale and transfer of moveable and immoveable properties of struck-off companies until they are restored. The state governments have been advised to take necessary action in this regard by disallowing registration of such transactions,” it added. 

The Corporate Affairs Ministry said that the information with respect to such companies had been shared with enforcement authorities, including the Central Board of Direct Taxes, Financial Intelligence Unit, Department of Financial Services and Reserve Bank of India for further necessary action. Companies have also been identified for inquiry, inspection and investigation under the Companies Act, 2013 and necessary action is underway, it added. 

“Separately, action has also been taken to disqualify directors on the board of companies that have failed to file financial statements or annual returns for a continuous period of three financial years during 2013-14 to 2015-16,” the statement said. “Around 3.09 lakh directors have been affected by this action. Preliminary inquiry has shown that over 3,000 disqualified directors are directors in more than 20 companies each, which is beyond the limit prescribed under the law. 

“With a view to checking the problem of dummy directors, action is underway to seed Director Identification Number with Permanent Account Number and Aadhaar,” it added. The Prime Minister’s Office has constituted a Special Task Force under the joint chairmanship of the Revenue Secretary and Corporate Affairs Secretary to oversee the drive against defaulting companies with the help of various enforcement agencies.

Cash deposits worth over Rs 17,000 crore were made and later withdrawn post demonetisation by as many as 35,000 companies, which are now de-registered, the government said. As it steps up the fight against illicit fund flows, so far names of around 2.24 lakh companies that have been inactive for long have been struck off from the official records and 3.09 lakh directors have been disqualified. 

To keep a tab on dummy directors being appointed to the boards of corporates, work is on to put in place a mechanism wherein new applications for directorship would be linked with PAN and Aadhaar numbers of the individual concerned. Stating that around 2.24 lakh companies have been struck off till date for remaining inactive for two years or more, an official release said restrictions have been imposed on operation of their bank accounts as well as on sale and transfer of their properties.