After crackdown on Shell companies, focus shifts to “active firms”

After coming down heavily on shell companies, the Centre is now shifting its focus on “active firms”, according to a recent report.

The Ministry of Corporate Affairs (MCA) is planning to conduct a  “census” of over 10 lakh active registered firms in which company details including addresses and background of directors will be examined and verified.

Companies found guilty of providing wrong information would be prosecuted under the Companies Act, the Ministry said.

Move to de-register companies with false credentials, would be considered it added.

The “census” plan is in its finals stages and pilot project is expected to commence in the coming weeks.

The entire exercise would be a first-of-its-kind in terms of the scale.

The Prime Minister’s Office (PMO) said MCA is a key stakeholder in the Centre’s  fight against black money.

Also read : Directors of shell companies face upto 10 years imprisonment 

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