Published On: Sat, Apr 1st, 2017

ED conducts searches at 100 locations of shell companies in 16 states

New Delhi: The Enforcement Directorate (ED) on Saturday launched a country-wide operation and carried out searches at over 100 locations in 16 states as part of its crackdown on over 300 odd shell companies.

ED has recently attached assets worth crores of such firms over last one week

According to reports, multiple teams of the ED on Saturday visited a number of locations and raided the premises of over 300 shell firms in prominent places including Delhi, Chennai, Kolkata, Chandigarh, Patna, Bhubaneswar, Bengaluru, Ranchi and Ahmedabad.

Sources in the Ed said that 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.

It may be mentioned here that the ED has recently attached assets worth crores of such firms over last one week.

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.

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