Clampdown on black money continues – Over 2 lakh companies’ bank accounts frozen

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In a significant clampdown on black money, Indian government on Tuesday struck off over 2 lakh company names from the register of companies for failing to comply with regulatory requirements and directed banks to freeze their accounts. More action against such companies are anticipated.

According to a senior finance ministry official, banks have been asked to keep an eye on company accounts which are inactive for a long time and which are non-compliant with government regulations.

republicworld.com

“The names of 2,09,032 companies have been struck off from the register of companies under Section 248 (5) of the Act. The existing directors and authorised signatories of such struck-off companies will now become ex-directors or ex- authorised signatories,” an official release said. Section 248 of the Companies Act — which is implemented by the corporate affairs ministry — provides powers to strike off names of companies from the register on various grounds including for being inactive for long. – http://www.republicworld.com/s/6530/over-2-dot-09-lakh-companies-struck-off-bank-accounts-frozen-government