India demonetisation: Shell firms crackdown reveals vast money laundering
06 Oct 2017

– By Akhilesh Sharma, NDTV

Among the top offenders of companies whose bank accounts were blocked last month by the government for illegal transactions and tax evasion was one that had more than 2,000 bank accounts, making it tough for tax officials to track transactions.

Last month, the Finance Ministry froze the accounts of two lakh shell companies which it believes have no active business operations or activities.

NDTV has learnt that in recent weeks, 13 banks have shared early information with the government on some of these dodgy companies. One had 2,134 accounts; another had 900 in its name; plenty had at least 100.

The information supplied so far is the first installment of what banks are expected to purvey and is related to about 5,000 of the two lakh blacklisted companies.

Data shows that between demonetisation being announced on November 8 and when they were identified in July as fronts, these 5,000 firms collective deposited about 4,570 crores and withdraw nearly the same amount, which suggests vast money-laundering.

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