Government will take action against more than two lakh companies who hide financial information
Acting against black money, the government had earlier canceled registration of more than two lakh companies.
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[New Delhi]: Government has decided to take action against companies not providing financial information for financial year 2015-16 and 2016-17. On Friday, the government said it will take action against 225,000 companies not providing financial information for 2015-16 and 2016-17.
The Ministry of Corporate Affairs has already canceled the registration of 226,000 companies which have hidden financial information for two consecutive years and have not returned.
While taking action against black money, the government has banned the transactions from these bank accounts while canceling the registration of these companies.
Shell companies have been under the scanner for black money transactions and theft of tax.
In the written information given to the Lok Sabha, Minister of State for Corporate Affairs P. P. Chaudhary said, "Under the section 248 of the Companies Act, a total of 225,910 companies have been identified during the financial year 2018-19, which have been identified for the financial year 2015-16 and 2016 -17 has not filed returns. '
He said, "Before the cancellation of these companies, the Registrar of Companies (ROC) will take necessary action." Section 248 of the Companies Act gives the government the right to cancel the registration of companies on many grounds.
Earlier, according to data released by the ministry, about 66 of the 17.79 lakh registered companies in India were active only till the end of June 2018.
These figures came amidst the ongoing action against Shell companies. According to the ministry, till June 30, about 11.89 lakh companies were active. They are kept in the category of active companies who constantly carry out transactions and from time to time provide financial information to the stock exchange.