Task Force to crack down on Benami Firms

What will the Task Force do?
  • Task Force is constituted to crack down on Benami Firms.
  • It will include members from various regulatory Ministries and enforcement agencies.
  • The involved agencies will invoke the stringent Benami Transactions (Prohibition) Amendment Act, 2016 against the shell companies and freeze their accounts and strike off the names of dormant companies.
  • It will also initiate disciplinary action against professionals abetting the companies and entry operators, who are used to launder unaccounted-for incomes into the banking system for projecting them as white money
Why is it needed?
  • There are about 15 lakh registered companies in India, but only 6 lakh of them file their annual returns.
  • It has raised suspicion that a large number of these companies are indulging in financial irregularities.
  • During a small sample analysis of such companies conducted by Government has found that Rs.1,238 crore in cash was deposited in these entities during the November-December 2016 period, after demonetisation.

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