close

News WrapGet Handpicked Stories from our editors directly to your mailbox

Shell firms: ED searches at 100 places in 16 states

Officials said multiple teams of the ED today visited these locations and raided the premises of about 300 shell firms.

Shell firms: ED searches at 100 places in 16 states
The agency has recently attached assets worth crores of such firms. Photo: Pixabay
Written By: PTI
Updated: Sat, Apr 01, 2017
12:48 pm
New Delhi, PTI
RELATED NEWS
Authorities begin razing Nirav Modi's seaside Alibaug bungalow Authorities begin razing Nirav Modi's seaside Alibaug bungalow
Islamic banking, halal investment Ponzi scheme in Bengaluru: Massive 144% returns for investors promised Islamic banking, halal investment Ponzi scheme in Bengaluru: Massive 144% returns for investors promised
Rs 8,100-cr bank loan fraud: ED moves against Sterling Biotech group promoters Nitin Sandesara, Chetan Sandesara, Dipti Sandesara and Hitesh Patel Rs 8,100-cr bank loan fraud: ED moves against Sterling Biotech group promoters Nitin Sandesara, Chetan Sandesara, Dipti Sandesara and Hitesh Patel
India seeks fugitive tag for Vijay Mallya; ED moves court to confiscate Rs 12,500-cr assets India seeks fugitive tag for Vijay Mallya; ED moves court to confiscate Rs 12,500-cr assets
Rs 16,000 cr scam: How Bharana duped banks; who lost and how much revealed here Rs 16,000 cr scam: How Bharana duped banks; who lost and how much revealed here

The Enforcement Directorate (ED) today launched a country-wide operation and conducted searches at 100 locations in sixteen states as part of its crackdown on shell companies.

Officials said multiple teams of the ED today visited these locations and raided the premises of about 300 shell firms in prominent places like Delhi, Chennai, Kolkata, Chandigarh, Patna, Ranchi, Ahmedabad, Bhubaneswar and Bengaluru among others.

They said the action is being carried out under the provisions of the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA) to check instances of money laundering and illegal foreign exchange transactions.

The action is part of the mandate given to the ED under a Special Task Force (STF) that was recently created by the government on the directions of the Prime Ministers Office (PMO).

The agency has recently attached assets worth crores of such firms in the last over a week's time.
    
Shell companies are defined as those firms which are set up by nominal paid-up capital, high reserves and surplus on account of receipt of high share premium, investment in unlisted companies, no dividend income, high cash in hand, private companies as majority shareholders, low turnover and operating income, nominal expenses, nominal statutory payments and stock in trade and minimum fixed asset.