Tightening the screws on Shell companies , the government has taken a new decision. Under this decision, shell companies or their promoter properties cannot be sold. According to the exclusive news of a news agency, the central government has asked states to ban the sale of property from Shell companies by issuing advices.

The Center has said in this Advisory that keep track of the property registry of state companies, match the property registry of the companies. Revenue officials will match this with the list of Shell Company. The list will be the registry only if the name does not exist.

Regarding this, the revenue officer will give a written chit. According to experts, the registration of Shell companies is like normal companies. Like normal companies, they have directors. Also the returns are filed. There are no owners of these companies, but they are useful to others.   

Former President and  CEO of the Institute of Chartered Accountant of India Amarjeet Chopra says there are no special capitals in Shell companies and neither do they do any business at regular intervals.

Generally, these companies have a transaction of shares and black money is white through it. Note: Black money was whitened by large-scale shell companies even during the note captive. 

According to Market Expert Vivek Mittal, these companies are primarily used to make black money white at minimal cost. These companies have the provision to save taxes or at least keep the tax altogether. In this, the entire money is shown as an expense, which does not even make tax. If you talk about business operations, then these companies do not have any kind of work, only entries on paper are recorded. Simply put, this is a company made on paper.   

As an example, understand that  For example, experts say that if I have Rs 50 lakh, then I will put in the account of 10 different companies. This money will be removed from the account of those companies in the name of expense or will be transferred from one company to another. This process is called money laundering. 

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