The government on Tuesday has instructed to frozen the account of more than 2.O9 companies whose names have been taken off from the records of the illegal matter.
As per the official said, "banks have been directed to freeze the bank accounts of these deregistered companies. While warning that action would be taken against erring firms, the official said the efforts would help in enhancing corporate governance standards as well as clean up the system that otherwise is prone to be misused."
“The names of 2,09,032 companies have been struck off from the register of companies under Section 248 (5) of the Act. The existing directors and authorised signatories of such struck-off companies will now become ex-directors or ex- authorised signatories,” an official release said.
Minister of State for Corporate Affairs P P Chaudhary said in a tweet:
Furthering our war against #BlackMoney, banks have been advised to immediately restrict bank accounts of struck-off companies.
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