Crackdown on black money: Over 2 lakh companies deregistered; bank accounts frozen, says government

New Delhi: As part of a broad crackdown on illegal transactions and tax evasion, the government on Tuesday said that names of over 2 lakh firms have been struck off from the Register of Companies (RoC) for failing to comply with regulatory requirements and action has been initiated to restrict operations of their bank accounts.

Existing directors and authorized signatories of such struck off companies will now become ex-directors or ex-authorized signatories, the Finance Ministry said in a statement.

These individuals will not be able to operate bank accounts till such companies are legally restored by an order of National Company Law Tribunal (NCLT). The restoration, as and when it happens will be reflected by change in the status of the company from ‘struck off’ to ‘active’.

These individuals will not be able to operate bank accounts till such companies are legally restored by an order of the NCLT. — Ministry of Finance (@FinMinIndia) September 5, 2017

"Government has stepped up decisive action against companies falling within the ambit of Section 248 of the Companies Act. The names of 2,09,032 companies have been struck off from the Register of Companies (RoC)", the Ministry said.

The department of financial services has, through the Indian Banks Association (IBA), advised all banks that they should take immediate steps to put restrictions on bank accounts of such struck off companies, it said.

Deptt.of Financial Services has advised all banks through IBA to take immediate steps to put restrictions on bank accounts of struck-off cos

— Ministry of Finance (@FinMinIndia) September 5, 2017

The statement further said that banks have been asked to employ 'enhanced diligence while dealing with companies' and keep a watch on companies which are defaulting in filing financial statements or annual returns.

A list of such companies (Registrar of Companies wise) has been published on the website of the Ministry of Corporate Affairs.

Here is the full list of companies

Earlier, the Finance Ministry had said on August 30 that the transactions of more than 3 lakh registered companies are under the radar of suspicion while 1 lakh companies were struck off the list.

The government had already identified more than 37,000 shell companies which were engaged in hiding black money and hawala transactions.

Around 163 companies which were listed on the exchange platforms were suspended from trading, pending submission of proof documents.