- Accounts of 2,09,032 suspected shell companies frozen by government
- Move a part of crackdown on tax evasion: Finance Ministry
- Shell companies are firms which have no active business operation / asset
Under the order, the owners and their nominated signatories will not be able to operate bank accounts until such companies are legally restored, the ministry said in a statement.
"The department of financial services has... advised all banks that they should take immediate steps to put restrictions on bank accounts of such struck off companies," the statement said.
Tax officials say the owners of shell companies create elaborate smokescreens, including naming personal servants and chauffeurs as board directors, to obscure the ultimate beneficiaries, conceal political investment, evade tax, commit fraud or manipulate tenders.
In his Independence Day address, Prime Minister Narendra Modi described such firms as "looters of the nation's wealth".