Rediffmail.com
April 01, 2017
The Enforcement
Directorate today launched a country-wide operation and conducted searches at
100 locations in sixteen states as part of its crackdown on shell companies.
Officials said multiple
teams of the ED today visited these locations and raided the premises of about
300 shell firms in prominent places like Delhi, Chennai, Kolkata, Chandigarh,
Patna, Ranchi, Ahmedabad, Bhubaneswar and Bengaluru among others.
They said the action is
being carried out under the provisions of the Prevention of Money Laundering
Act and the Foreign Exchange Management Act to check instances of money
laundering and illegal foreign exchange
transactions.
The action is part of
the mandate given to the ED under a Special Task Force that was recently
created by the government on the directions of the Prime Ministers Office.
The agency has recently
attached assets worth crores of such firms in the last over a week's time.
Shell companies are defined
as those firms which are set up by nominal paid-up capital, high reserves and
surplus on account of receipt of high share premium, investment in unlisted
companies, no dividend income, high cash in hand, private companies as majority
shareholders, low turnover and operating income, nominal expenses, nominal
statutory payments and stock in trade and minimum fixed asset.
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