After demonetization and the fight against black money, the central government today announced the various reports related to the efforts to eliminate corruption and black money. The Union Ministry of Corporate Affairs said today that about 2.24 lakh companies have been struck off, as they have remained largely inactive and are suspected to be operating as shell companies. Shell companies are companies that are just created with the purpose of converting black money into white and also for money laundering. The government took action against these companies based on financial statements provided by 56 banks. The financial reports submitted by banks have also revealed that around Rs 17,000 crore worth of transactions were carried out by these firms after the government had announced demonetization in November last year.
The bank reports have identified some very suspicious transactions after demonetization. For example, there is a company that has 2,134 bank accounts. This clearly shows the extent of corruption that exists in the system. It also highlights the need for foolproof identification systems such as Aadhaar. Bank reports also show another company that earlier had negative balance, but soon after demonetization, it deposited and withdrew Rs 2,484 crore. Clearly, such transactions are most likely to be involving black money or money laundering. The government has also disqualified 3.09 lakh directors of companies that have not filed their annual reports for three financial years. Filing of annual reports and financial statements is mandatory for all registered companies under the Companies Act.