Speedy steps are being taken against shell companies and as many as 1.78 lakh firms that have not been carrying out business activities for long have been deregistered, Corporate Affairs Minister Arun Jaitley said on Friday. He also emphasised that balance needs to be maintained between the ease of doing business and ensuring that the firms are not misused.
Jaitley, who also holds the Finance and Defence portfolios, told the lok Sabha that there is no definition for shell companies under the Companies Act but such entities are used for round tripping of money. The real owners behind such entities need to be identified and expeditious steps are being taken under the benami and Income Tax laws, he said during the Question Hour. As many as 1.78 lakh companies have been deregistered in recent times, he added.
In a written reply to the lok Sabha, Minister of State for Corporate Affairs Arjun Ram Meghwal said the Registrars of Companies (RoCs) have removed 1,62,618 companies from the register of the companies as of July 12, 2017.
Replying to supplementaries, Jaitley mentioned about markets regulator Sebi’s action against suspected shell companies on the stock exchanges, saying ‘baazaar mein thoda uthal puthal hua (there was some turmoil in the markets)’.