Surgical strike on Shell Companies to curb Black Money - A Modi government way
Elbert Hubbard, an American writer, once said "Responsibility is the price of Freedom." While the corporate expects government to give more freedom to facilitate ease of doing business in India, Government of India is ensuring Companies who gets exemptions (freedom) from stricter compliance do its part of filing on time. Prime Minister Modi on July 1, 2017 at CA day announced and which was later confirmed by FM Arun Jaitley in Parliament, registration of nearly 1.62 lakh companies were cancelled by Ministry of Corporate Affairs (MCA). In a follow up suit SEBI recently banned 331 so called 'Shell Companies' from trading on Stock Exchanges. The criteria for Shell Companies were not very clearly defined but it is understood that any Companies, which has not filed its Annual Filing Forms (Form AOC-4 Balance Sheet and/or Form MGT-7 - Annual Return) for period of 2 or more year is considered as a Shell Company automatically. MCA, had issued notices to all suc...