Skip to main content

Probe into 80,000 shell firms hits dead end as govt fails to trace PANs

By
Probe into 80,000 shell firms hits dead end as govt fails to trace PANs
The government had sent notices to 226,000 companies for not filing statutory returns
The probe into 80,000 shell companies struck off by the Registrar of Companies (RoC) in the first lot has hit a dead end. The government had not been able to trace the Permanent Account Numbers (PANs) of 80,000 companies, which was hampering investigations, officials of the corporate affairs ministry said. “Banks were asked to furnish the transaction data of these shell companies. But they did not respond despite multiple reminders. Banks have told us that without PAN card details, it was not possible to track these companies,” one of the officials said.
PAN is compulsory for any transaction above Rs 50,000. So far, the government has transaction details of only 73,000 companies. These companies deposited Rs 240 billion at the time of demonetisation. Many of these firms were found evading taxes. In a recent communication to the corporate affairs ministry, the income-tax department had asked the RoC to re-activate companies with tax liabilities and pending cases. The tax department had asked the ministry to inform the department before striking them off.
The government had sent notices to 226,000 companies for not filing statutory returns. After investigation, it unearthed 16,537 shell companies and suspects another 80,670. On the basis of common directors, it drew up a list of another 16,739. The government has issued notices to a further 225,000 shell companies based on non-filing of returns. The number is likely to rise, according to ministry officials. It was quite possible that out of the 1.1 million companies registered with the RoC, only around 500,000 would be fully operative, one official said.
The Business Standard, New Delhi, 20th June 2018

Comments

Post a Comment

Popular posts from this blog

Govt’s gamble on GST cuts: What do the bond and currency markets signal?

By
  It’s not just humans who suffer from cognitive biases; markets do too. Interestingly, different financial markets exhibit distinct biases, each interpreting events through its own prism of prejudice. Take the recent announcements on GST reforms: equity markets have chosen to view them through the lens of growth, while bond and currency markets are focusing on potential macroeconomic risks—fiscal pressures and current account challenges. So, which lens captures the true pulse?Equity markets may be right in expecting GST reforms to revive consumption, which has remained lacklustre for a while. But the key question remains—will this revival come at the cost of broader macro stability?It is well known that consumption stocks have rallied since the GST rationalisation announcement. But what about bond markets? What signals are they sending since this rejig was announced from the ramparts of the Red Fort?The signs aren't encouraging. Bond prices have slumped and yields have surged sinc...
Post a Comment
Read more

Luxury carmakers urge clarity on GST rates to boost festive season sales

By
  A clear picture regarding new GST rates at the earliest will help the overall auto industry, including the luxury car segment, to regain momentum in the ongoing quarter, which generally sees enhanced sales on account of the festive season.The high-powered GST Council, chaired by Finance Minister Nirmala Sitharaman, will meet on September 3-4 to discuss moving to a two-slab taxation.In an interaction with PTI, BMW Group India President and CEO Hardeep Singh Brar said the recent speculation about the change in GST rates has caused uncertainty in the minds of consumers.Consumer interest and demand is strong, but they (prospective buyers) have adopted a wait-and-watch approach, and this delayed decision-making is impacting new vehicle sales at a certain level, he noted."Expediting clarity on GST rates is essential to get back to speed and ensure the auto sector's contribution to economic growth during this quarter is robust," Brar stated.He also hoped that the sustainable p...
Post a Comment
Read more

Sebi proposes tighter norms for green bond third-party reviewers

By
  Sebi on Friday said it has proposed to tighten the norms to appoint independent third-party reviewers or certifiers for green debt securities to align them with requirements for other ESG-linked bonds.In a draft circular, Sebi said that the current norms for green bonds, introduced in February 2023, lack detailed requirements around reviewer independence, conflict of interest mitigation, and disclosure standards that are now in place for other ESG-linked securities under a June 2025 circular.The regulator's latest proposal seeks public comments on a revised framework that would bring parity by incorporating comprehensive criteria for third-party certifiers of green bonds on non-convertible securities.Under the proposed norms, issuers of green debt securities will need to appoint reviewers who are independent of their management, directors, and key managerial personnel. These reviewers will be remunerated in a way that prevents any conflicts of interest and possess relevant expert...
Post a Comment
Read more