New Delhi: The Centre on Wednesday decided that if director of any of the 2 lakh companies struck off from the Register of Companies tries to siphon-off money from bank accounts, they will be liable for minimum of 6 months of imprisonment extendible to 10 years.
“If it is found that the fraud involves public interest, the punishment shall not be less than 3 years and fine may also be imposed which would be three times the amount involved,” said a government statement.
It said all efforts are also being made to identify actual beneficiaries and persons behind such shell companies and action will be taken against CAs/company secretaries/cost accountants who helped in setting up such firms.
The government has launched a crackdown on shell companies which are allegedly used as conduits for illicit fund flows and tax evasion. Such firms exist only on paper, without any active operations.
Finance ministry had said on Tuesday that it has asked banks to restrict operation of bank accounts of 2 lakh companies struck off from the Register of Companies as part of its anti-blackmoney drive.
In a review meeting chaired by the minister of state for corporate affairs, P.P. Chaudhary, it was also decided that directors of these shell companies which have not filed returns for three, will be disqualified from being appointed director in any other company or from being reappointed as director in any of the companies where they had been directors. This will compel them to vacate offices.
