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Published: Sat, October 07, 2017
Economy | By Melissa Porter

GOI crackdown on black money

GOI crackdown on black money

Of the Rs 4,574 crore deposited across 13 banks, IDBI Bank alone accounted for deposits worth Rs 3,792 crore by 3,330 companies and withdrawals of Rs 3,793 crore during demonetisation till the companies got struck-off.

The Ashwin Vanaspati India Pvt Ltd held 915 bank accounts, the Anujay Exim Pvt Ltd 313 accounts while the Radhakrishna Payal Bhandar had 298 bank accounts which showed suspicious transactions after demonetisation. From having a cumulative balance of about Rs 13 crore as on November 8, 2016, these companies have deposited and withdrawn about Rs 3,800 crore, leaving a negative cumulative balance of nearly Rs 200 crore at the time of freezing of their accounts, the ministry said in a statement. It was found that after considering the loan accounts, these companies had a meagre balance of ₹22.05 crore to their credit on November 8, 2016.

The government on Friday stated that it has collated information about 5,800 shell companies whose near zero-balance accounts saw almost Rs 4,574 crore of deposits after note ban and Rs 4,552-crore withdrawal thereafter.

According to the government, many accounts which had miniscule or negative balance before demonetisation received huge deposits after the demonetisation. Few of the companies have been found to have more than 100 accounts in their names.

They subsequently deposited Rs 4,573 crore and withdrew Rs 4,552 crore. It may be recalled that after being struck off the list, the operation of the bank accounts of the suspicious companies was restricted for the discharge of liabilities only.

In some cases, transactions have been recorded even after the company was struck off, the government said.

Earlier this year, the government had struck off 2,09,032 companies from the Register of Companies because of suspicious transactions. They belonged to 3,330 companies, which had a cumulative balance of Rs 13.29 crore on November 8.

"It needs to be re-emphasized that this data is only about 2.5% of the total number of suspected companies that have been struck off by the Government".

The government has expressed surprise that some companies have also encouraged to deposit and withdraw money even after the ban. The Finance Ministry informed that the investigative agencies have been asked to complete necessary investigation into all these vital details & data in a time bound manner.

The announcement comes after 13 banks submitted data on bank account operations and post-demonetisation transactions of some of the 209,032 companies that had been struck off the Registrar of Companies earlier this year.

The huge money game played by these companies may well be the tip of the iceberg of black deeds.

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