PMO calls for freezing of shell firms’ bank accounts within two weeks
11 Jul 2019

The Prime Minister’s Office (PMO) has called for expeditious freezing of bank accounts belonging to shell companies after some of them were found to be active, after around 350,000 inactive companies were struck off the official records since 2016-17.

Nripendra Misra, principal secretary to the Prime Minister, wrote a letter to top bureaucrats on June 23 asking them to convene a meeting to ensure finalisation of “standard operating procedures” for freezing of all bank accounts of shell companies within two weeks, in a bid to crackdown on money laundering.

Following this, Finance Secretary S C Garg will chair a meeting on Thursday, to be attended by Corporate Affairs Secretary Injeti Srinivas, Financial Services Secretary Rajiv Kumar, Revenue Secretary A B Pandey, CBDT Chairman Pramod Chandra Mody, (IBA) Chairman Sunil Mehta, among others to discuss the matter.

“There was a lot of coordination and compliance issues created by banks. As a result, many of these bank accounts are still operational which is a cause of concern,” said a senior government official, requesting anonymity.

By Somesh Jha and Ruchika Chitravanshi, Business Standard, 10 July 2019

Read more at Business Standard

Photo: Norbert Schiller, Copyright: World Economic Forum (www.weforum.org) [CC BY-SA 2.0], via Wikimedia Commons

Read more:

Lawbreakers to lawmakers? The ‘criminal candidates’ standing in India’s election

India’s Modi faces calls for resignation over French jet deal

India’s PNB slides after reporting suspected fraud at Bhushan

Count this content towards your CPD minutes, by signing up to our CPD Wallet

FREE CPD Wallet

You must be logged in to post a comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed.