Shell companies are such companies that neither actively participate in the business nor do they have any real property. In fact, shell companies are built on paper only. Most of the companies are not officially operated by Shell companies.
In fact, shell companies are used to invest black money and make it white. It is believed that shell companies are also used in funding anti-national elements. Recently, the Central Government has initiated proceedings against more than two lakh Shell companies.
Steps taken by the Central Government to control shell companies:
In order to control Shell companies, a special task force has been set up in the Prime Minister's Office.
The database is being prepared by this task force for collecting data in relation to shell companies.
A definite format has been set up for Shell companies so that the companies coming under this format can be included in the Shell Companies category.
Now every company's director has to submit his base card. It will be easy to find out which company was formed by whom.
Most of the information will be required to be given at the time of formation of the company, which will be easily accessible to the Shell companies.
Major reasons for shell companies to be anti-national and harmful to the economy
Shell companies are considered anti-national because terrorism is financed through them.
Similarly, there have been allegations that shell companies are also being operated for funding of pious slogans and illegal weapons.
Shell companies are considered to be so harmful to the economy because black money through them is converted into white money.
Similarly, shell companies are also used for money transactions through hawala.
Conclusion:
It can be concluded that the step taken by the government against shell companies is justified. Shell companies are anti-nationals and are also harmful to the economy.
