Notices sent to 5,766 shell companies functioning in 7 districts in the western region- V.E. Jose Kutty, Registrar of Companies.
Stern departmental action would be initiated against facilitators who prepare documents to enable shell companies to get bank loans warned V.E. Jose Kutty, Registrar of Companies
Jose kitty, who briefed media here said, that notices have been sent to over 5,766 companies and 12,000 directors of shell companies in the 7 districts of the western region, explainable within 30 days lest penal action based on a provision of Companies Act would be initiated against them.
Noting that the 1500 such shell companies, that exist only in the name have availed bank loans to the tune of Rs.10, 00 crores which are classified as nonperforming assets Jose Kutty said that this kind of cheating banks is considered as one of the foremost of economic crimes committed by these shell companies.
While noting the registration process of new companies have been made easy and the fee has been reduced to Rs.500 from the earlier Rs.36, 000. So the whole process has been made easy for the benefit of the budding entrepreneurs he said.
When the names of directors of shell companies are permanently removed from the central registry of companies, their bank accounts would be frozen, Rose kitty warned.