Govt cracks the whip on shell companies
- After trying to tighten the rules against shell companies through its Budget proposals, the
- government has decided to follow with "harsh punitive" action that will include freezing of bank
- accounts and striking off the names of dormant companies
- Shell companies' investments in real estate could also come under the scanner
- The government has also decided to invoke the Benami Transactions (Prohibition) Amendment Act
- A task force has been set up to monitor actions against deviant shell companies by various enforcement agencies. The basic approach is to prevent money laundering and tax evasion. The government will use technology to identify shell companies, a database on these companies and their directors would be built by pulling information from various agencies
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