2.09 Lakh 'Shell' Companies Under Scrutiny For Money Laundering Post Demonetisation

News World India | 0
| October 6 , 2017 , 14:35 IST

The demonetisation of old Rs 500 and Rs 1,000 currency notes in November 2016 was announced with several goals in mind, including removing black money from the economy. However, based on recent reports, extensive money laundering took place after demonetisation by means of shell companies.

The Centre has confirmed that after demonetisation around 2,09,032 companies are under scrutiny for their transactions. From the more than 2 lakh firms, 13 banks have submitted data regarding 5,800 companies under scrutiny.

ALSO READ: Rajya Sabha MP Subhash Chandra's Foul Play With Shell Companies

The companies were found to have dubious transactions; while some companies had more than 100 different accounts, another had more than 2,130 accounts.

Activities of these companies became more suspicious after demonetisation, as their accounts suddenly became more active. The companies having a balance of Rs 22.05 crore as of November 8, 2016, were found to have deposited large amounts of overnight. On November 9, 2016, the day after demonetisation was announced, the companies deposited a sum of Rs 4,573.87 crore.

ALSO READ: Three Lakh Shell Companies Uncovered: PM Modi

In another case, one bank noted 429 companies as having zero balance on November 8, 2016, after which the same companies withdrew Rs 11 crores with a cumulative balance of Rs 42,000 until the accounts were frozen.

According to reports, the data recovered so far is only 2.5 percent of the total number of suspected shell companies. Officials of the Finance Ministery believe that further mining of data will reveal thousands of other tax evaders.