The government has referred 18 shell companies to Serious Frauds Investigation Office (SFIO) for depositing and withdrawing large sums during demonetization in what appeared to be entities that existed largely on paper.

All entities that had dealings of over Rs 100 crore have been referred to the SFIO. Depending on the investigations, the government will take further action.

MCA has already asked companies to share details of deposits of old currency notes during the demonetization period. That exercise is in addition to the focus on over 2.24 lakh companies that have been de-registered for not filing the requisite returns under the Companies Act for three years.

While over 3 lakh directors have also been disqualifying from taking up board positions, banks have also been asked to scan the records to examine if large deposits and withdrawals were made during demonetization or after de-registration. The bank accounts of these companies are also being frozen.

Source: Times of India