Money Laundering by companies
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The Indian Ministry of Corporate Affairs (MCA) has released a report according to which about nine lakh registered companies haven’t filed annual returns. These companies are potential source of money laundering. Hasmukh Adhia stated on Saturday that the Ministry of Corporate Affairs released a notice for de-registering 3 lakh unlisted companies. Apart from this MCA is working for releasing notices for remaining companies. According to Adhia, it has been revealed after the release of an annual audit report that there are total 15 lakh companies registered with MCA, out of which 8-9 lakhs are not filing returns.

Both MCA and PMO is now keeping a close watch on these companies which has not filed annual returns. They should be subjected to harsh punitive action. As the companies sit idle after registering with MCA and don’t transact any business, they show nil income. This comes under trade-based money laundering. Recently Directorate of Revenue Intelligence and Enforcement Directorate cracked down big Rs 6000-core Bank of Baroda case successfully.

The government is trying hard to improve quality of manpower. ED is working for filling up existing vacancies under control of finance ministry.

Adhia states that utilisation of technology is in focus now for the reason the system should not be intrusive. Thus, MCA needs not to declare anyone as a thief because the mechanical system itself is capable of catching thieves.

Many ways of money laundering have been discovered after high-value currency demonetization last year. These companies found many ways to launder money. This reveals the reality of certain companies and puts them in scanner.

Union Finance Minister Arun Jaitley, stressed on power to Enforcement Directorate department in dealing with non-compliance rules.

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