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SIT on black money recommends taking steps to detect shell companies

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New Delhi: The Special Investigation Team on black money has recommended that law enforcement agencies take steps to detect shell companies after it was found that there were 2,627 people who were directors on the board of over 20 companies in violation of the Companies Act.

The finance ministry said in a statement here on Tuesday that the SIT findings showed the total number of companies sharing their address with at least 19 other companies are 13,581 in number.

“The SIT has requested the Ministry of Corporate affairs to take necessary action with respect to the violation of the Companies Act noted above. The SIT has further requested CBDT, CBEC, and Enforcement Directorate to undertake due diligence on the Company data referred to above,” the statement said.

“While there is no specific Act/Rule, which debars Companies from having the same address, SIT has desired that greater vigilance is accorded by law enforcement and intelligence agencies like CBDT, CBEC, ED, and FIU while examining the operations of such Companies,” it added.

It has also asked the Serious Frauds investigation office (SFIO) under the ministry of company affairs to regularly mine the MCA database for such shell companies.

Shell companies are the entities that are incorporated as companies, and are used only for routing funds, without undertaking any real business activity.

SIT looked into the matter after a panel headed by CBDT chairman in 2012 had said that the use of shell companies to provide accommodation entries to launder black money was noticed in a number of high profile cases investigated.


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Demonetisation Anniversary: BJP acts cheeky, releases new video showing Frustration of ‘Corrupt’ Politicians following Demonetisation

The one-minute video, which is now going viral on social media, has already been re-tweeted more than 2 thousand times since it was released on November 7, on the eve of demonetization move.

Demonetisation Anniversary
Screen grab of the sarcastic video released by BJP to mark Demonetisation Anniversary. Twitter

New Delhi, November 8, 2017 : On November 8 2016, every Indian citizen sat glued to their TV screens as Narendra Modi was set to make a big announcement. Outcome? The Indian Prime Minster shocked the entire nation with the introduction of Demonetisation, a move that was to change the very foundation of the cash-dependent Indian economy.

The much-debated move by Modi garnered the attention of several well-versed economists from the country and abroad, alike. While some people willingly welcomed the move, there were others who stood in staunch criticism.

As the move completes its first year, the Bharatiya Janata Party (BJP) is set to observe November 8 as ‘anti-black money day’ to celebrate Demonetisation anniversary in the country.

On the eve of the Demonetisation anniversary, the BJP released a cheeky video claiming to depict how ‘corrupt’ politicians have been criticizing the move, as the nation won following demonetisation.


In the video, the BJP attempted to take a dig at corrupt politicians, who have been criticizing PM Modi’s Demonetisation move.

In the video, a woman, playing the character of a frustrated, corrupt politician can be seen going on a rant over PM Modi’s note ban initiative, which was aimed to combat black money, corruption, fake currency and terrorism.

The video ends with a voice-over saying demonetisation has not only brought out this frustration of corrupt citizens, but also black-money, claiming that almost 99 per cent cash which was previously lying hidden with people has now entered the banking system.

The one-minute video, which is now going viral on social media, has already been re-tweeted more than 2 thousand times since it was released on November 7, on the eve of demonetization move.

Ahead of the Demonetisation anniversary, the last few days have witnessed several leaders present their opinions on PM Modi’s demonetization move.

Finance Minister Arun Jaitley called PM Modi’s note ban initiative a ‘watershed moment’ while Piyush Goyal, Minister of Railways believes the move has pushed India towards a more transparent economy.

However, the move is being criticized by ex-Prime Minister Manmohan Singh calling it ‘irresponsible’. The opposition maintains that PM Modi’s note ban initiative has caused reckless damage to the country and the Indian economy.

On Demonetisation anniversary, the BJP is set to observe November 8 as ‘anti-black money day’, while opposition leaders are set to observe the day as ‘black day’ in protest against the note ban initiative.