Deregistered companies deposited Rs 17,000 crore after demonetisation

New Delhi: The government on Sunday said that cash deposits worth over Rs 17,000 crore were made and later withdrawn following demonetisation by as many as 35,000 companies, which are now deregistered.

Some 2.24 lakh companies have been struck-off by the corporate affairs ministry for remaining inactive for a period of two years or more.

“Preliminary enquiry on the basis of information received from 56 banks in respect of 35,000 companies involving 58,000 accounts has revealed that an amount of over Rs 17,000 crore was deposited and withdrawn post demonetisation,” said an official statement.

In one case, a company which had a negative opening balance on November 8 2016, deposited and withdrew Rs 2,484 crore post-demonetisation, it said.
The information regarding such firms have been shared with enforcement authorities for further action.

With respect to the deregistered companies, state governments have been advised to disallow registration of properties of such entities.

The statement said that action has also been taken to disqualify directors on the board of companies that have failed to file financial statements and/or annual returns for a continuous period of three financial years during 2013-14 to 2015-16.

“Around 3.09 lakh directors have been affected by this action. Preliminary enquiry has shown that over 3,000 disqualified directors are directors in more than 20 companies each, which is beyond the limit prescribed under the law,” it said.

“In the light of the evidence with respect to abuse of the corporate structure through multi-layering, not more than two layers are now permitted beyond the wholly owned subsidiary,” said the statement. This is in addition to the existing restriction which prohibits a company to make investment through more than two layers of investment companies.