SIT on Black money: 2,672 persons on boards of more than 20 companies

The Special Investigation Team (SIT) on Black Money has made some damning observation in its third report, about use of shell companies to provide accommodation entries to launder black money in a number of high profile cases, investigated or under investigation in the recent past.

According to the report, there are 2,627 persons holding directorship in more than 20 companies, which is violation of both Section 165 of the Companies Act, 2013 as well as violation of Section 275 of the erstwhile Companies Act, 1956.  

The total number of companies involved is 77,696.

It also observed that a total of 345 addresses have at least 20 companies operating from the same address.  The total number of companies sharing their address with at least 19 more companies are 13,581.  

Though sharing of same address per se is not illegal, the SIT has asked for 'greater vigilance by law enforcement and intelligence agencies while examining the operations of such Companies, says a finance ministry statement.

The SIT has also asked the Ministry of Corporate affairs to take necessary action against violation of the said Companies Act.