New Delhi: The government has said, over 3 lakh 82 thousand companies were struck off till the financial year 2020-21 in Special Drives taken by Registrar of Companies. This was stated by Union Minister of State for Corporate Affairs Rao Inderjit Singh in a written reply to a question in Rajya Sabha yesterday.
The Minister stated that the Government has undertaken Special Drives for identification and strike off Companies by invoking the provisions of section 248 (1) of the Companies Act. Mr Singh said there is no definition of the term Shell Company in the Companies Act.
He added that it normally refers to a company without active business operation or significant assets, which in some cases are used for the illegal purpose such as tax evasion, money laundering, obscuring ownership and benami properties.
He said, the Special Task Force set up by the Government to look into the issue of Shell Companies has recommended the use of certain red-flag indicators as alerts for identification of suspected Shell Companies. Giving more details, the Minister stated that the Registrar of Companies struck off such companies after following the due process of law.
