The shell companies and black money, which does not go into the accounts go hand in hand. The rise in the black money should be attributed to the shell companies that were set up across the country.
The shell companies serve the purpose of reducing the tax liabilities, raising the capital. What's surprising is that no active business transactions take place in these shell companies and they are mere money making devices.
The fraudsters use the shell companies for money laundering and other illegal activities so that their names won't pop up when officials raid the companies.
The shell companies were established as mushrooms by the fraudsters. As per the official data that was shared by the Union Government as many as 2,38,223 shell companies were identified across the country between 2018-2021.
The data was disclosed by Union Minister of State for Corporate Affairs Rao Inderjit Singh in a written reply in Rajya Sabha today.
Adding further, the Union Minister said that there is no operational definition for the term Shell companies and these companies refer to entities that have no active operations and assets.
The Union Government is on a mission to strike down these shell companies and a dedicated team was constituted to look after such entities. The special team has been rendering it's duties in this regard for the past three years, he said.
While more than 2,38,000 shell companies have been identified across the country in the past three years, Telugu States alone account for around 25,000 shell companies.
Looking at the Telugu States, the culture of business magnets and bigwigs entering politics is high which resulted in such shell companies.
Earlier big leaders like Revanth Reddy, Sujana Chowdary, CM Ramesh, Ayodhya Rami Reddy, Raghu Ramakrishnam Raju, former Lok Sabha member Rayapati Sambasiva Rao faced allegations of floating such companies.
The Telangana capital city Hyderabad alone has 20498 shell companies, the highest for any region in Telugu States, followed by Vijayawada with 4918 companies. All these companies have been closed by the government, the Minister said in the house.
Going by the information shared by the Union Minister, the financial capital Mumbai tops the list of the cities in terms of such shell companies with as many as 52869, while Delhi has 45595 companies.
The shell companies serve the purpose of reducing the tax liabilities, raising the capital. What's surprising is that no active business transactions take place in these shell companies and they are mere money making devices.
The fraudsters use the shell companies for money laundering and other illegal activities so that their names won't pop up when officials raid the companies.
The shell companies were established as mushrooms by the fraudsters. As per the official data that was shared by the Union Government as many as 2,38,223 shell companies were identified across the country between 2018-2021.
The data was disclosed by Union Minister of State for Corporate Affairs Rao Inderjit Singh in a written reply in Rajya Sabha today.
Adding further, the Union Minister said that there is no operational definition for the term Shell companies and these companies refer to entities that have no active operations and assets.
The Union Government is on a mission to strike down these shell companies and a dedicated team was constituted to look after such entities. The special team has been rendering it's duties in this regard for the past three years, he said.
While more than 2,38,000 shell companies have been identified across the country in the past three years, Telugu States alone account for around 25,000 shell companies.
Looking at the Telugu States, the culture of business magnets and bigwigs entering politics is high which resulted in such shell companies.
Earlier big leaders like Revanth Reddy, Sujana Chowdary, CM Ramesh, Ayodhya Rami Reddy, Raghu Ramakrishnam Raju, former Lok Sabha member Rayapati Sambasiva Rao faced allegations of floating such companies.
The Telangana capital city Hyderabad alone has 20498 shell companies, the highest for any region in Telugu States, followed by Vijayawada with 4918 companies. All these companies have been closed by the government, the Minister said in the house.
Going by the information shared by the Union Minister, the financial capital Mumbai tops the list of the cities in terms of such shell companies with as many as 52869, while Delhi has 45595 companies.