Saturday saw the start of a nationwide crackdown on thousands of “shell companies” — that are, according to an official release, corporate entities that “do not have any substantial business but are suspected of having been used for laundering ill-gotten money and facilitating bogus foreign transactions” — that apparently belong to corporate houses and politicians.
The Enforcement Directorate conducted raids in 110 locations across 16 states, investigating some 300 bogus firms engaged in dubious activity. This is quite massive and is only a start. The end results are not foreseeable.
However, if the government’s suspicions have any basis, we can only marvel that so many companies were engaged in illegal activity for so long. What does that say for law enforcement in India? What have the revenue intelligence agencies like the income-tax department, Securities and Exchange Board of India, the RBI and various entities of the corporate affairs ministry been up to if illegal financial activity has been flourishing on such a frightening scale?
It appears that the massive operation has originated in the Prime Minister’s Office whose “directive” is to rid India of the sin of black money. This would suggest thieves and crooks are not caught unless directed to do so by the PMO. It is no less than curious that all news reports related to the subject name prominent politicians in different parts of the country as being subjects of raids. These belong to the Opposition parties. Perhaps more Opposition leaders will be sought to be raided, and none from the ruling party!
