For curbing the menace of black money prevailing in the country, the Centre has directed the banks to immediately seize the accounts of over two lakh firms.
The names of the companies were dug out from the office of Registrar of companies for failing to complete the returns and other formalities.
On the basis of this revelation, the directors of the companies will soon be stopped from operating their accounts.
The action comes in wake of the fresh notices served on 2.97 lakh firms, who failed to act on the show-cause notices.
“The names of 2,09,032 companies have been struck off from the Registrar of Companies under Section 248 (5) of the Companies Act. The existing directors and authorised signatories of such struck off companies will now become ex-directors or ex-authorised signatories. These individuals will therefore not be able to operate bank accounts of such companies till such companies are legally restored…,” said the Ministry of Finance.
“….action has been initiated to restrict the operation of bank accounts of such companies. The department of financial services has, through the Indian Banks Association, advised all banks that they should take immediate steps to put restrictions on bank accounts of such struck off companies,” the ministry added.
The move was initiated post the crackdown of black money after the demonetisation drive.
Banks have been asked to be strict towards the defaulters as a precautionary measure.
“A company even having an active status on the website of the ministry of corporate affairs but defaulting in filing of its due financial statement(s) or annual return(s) of particular of charges on its assets on the secured loan should be seen with suspicion…, the finance ministry said.
