Question : Involvement of CAs in Shell-Bogus Companies

(a) whether the Government has identified shell/bogus companies post-demonetization and taken serious note in this regard and if so, the details thereof;

(b) whether the Government has cancelled the registration of above shell/ bogus companies and referred the cases of suspected companies which are involved in conversion of black money into white money to Enforcement Directorate (ED) for further investigation;

(c) if so, the details thereof and progress made in this regard till date;

(d) whether the Government has also identified involvement of some Chartered Accountants (CAs) in such malpractices and if so, the details thereof along with action taken by the Government thereon; and

(e) the steps being taken by the Government to remove/stop such malpractices and involvement of CAs therein?

Answer given by the minister

THE MINISTER OF STATE IN THE (SHRI ARJUN RAM MEGHWAL)
MINISTRY OF CORPORATE AFFAIRS

(a) to (e): The term Shell/Bogus Company is not defined under the Companies Act. However, the Registrars of Companies (ROCs) have removed 1,62,618 companies from the register of companies as of 12.07.2017 after following the due process under Section 248 of the Companies Act, 2013 as detailed in Annexure-1.
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