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Monday , 22 October 2018
Breaking News

More than 2 lakh companies banned as part of fight against black money

Newspatrolling: The government revealed today that more than 2 lakh companies have been deregistered for their failure to comply with regulatory requirements. It may be recalled that shell companies had become an easy way for people to hide and transfer their black money. With many of these companies now deregistered by the government, it would help curtail money laundering, black money and tax evasion. The names of the more than 2 lakh companies have been struck off the Registrar of Companies (ROC). The government said that these entities and their directors will no longer be able to operate bank accounts. Such restrictions would continue until these companies comply with regulatory requirements by submitting the required documents and approvals.

An official statement released by the government says that 2,09,032 companies have been deregistered. The names of these companies have been struck off the Registrar of Companies (ROC) under Section 248 (5) of the Act. All directors and authorized signatories of these companies will be declared invalid from this date onwards. This means that they will not be able to enter any transactions on behalf of the company. According to Section 248, it is within the powers of the government to strike off names of companies from the ROC for a wide variety of reasons including being inactive for long periods of time. All banks have been instructed to place restrictions on bank accounts of the deregistered companies.

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