The Financial Express

India freezes bank accounts of shell cos

| Updated: October 22, 2017 15:50:46

India freezes bank accounts of shell cos

India has frozen the bank accounts of 209,032 suspected shell companies as part of a crackdown on illegal transactions and tax evasion, the finance ministry has said.

The latest action against shell companies – which have no active business operations or assets – comes months after authorities ordered nearly 200,000 such firms to be shut down.

Under the order, the owners and their nominated signatories will not be able to operate bank accounts until such companies are legally restored, the ministry said in a statement on Tuesday.

"The department of financial services has ... advised all banks that they should take immediate steps to put restrictions on bank accounts of such struck off companies," the statement said. – Reuters

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