Over 1 lakh shell companies deregistered, 37,000 under probe: PM Modi

In a follow-up action since the 8 November 2016 demonetisation drive, the government has taken tough action against firms helping to hide black money, leading to cancellation of registration of over 1,00,000 firms, Prime Minister Narendra Modi has said.

Minister Narendra Modi delivering the address at the Chartered Accountants' Day celebrations in Delhi on 1 July 2017

Speaking on the foundation day of the Institute of Chartered Accountants of India on Friday, the prime minister said that the government is committed to more tough action against firms helping to hide black money.

Giving details of the action taken post demonetisation, Modi said data mining showed that over 3 lakh registered companies indulged in suspected dealings. He said while the registration of 1,00,000 shell firms have been cancelled, more than 37,000 shell firms have been detected.

"Government has cancelled registration of over 1 lakh companies in a single stroke and more than 37,000 shell firms have been identified for strong action," he said.

"You (CAs) take care of the economic health of the country and you are famous world over for your knowledge and financial skills. You are a big pillar of the Indian economy," Modi said while addressing CAs at an event organised by the Institute of Chartered Accountants of India (ICAI).

It is auspicious that 1 July turns out to be the foundation day of ICAI and the launch day of the Goods and Services Tax (GST) regime, Modi said.

Modi launched a new CA course at the event and urged them to bring technological innovations to meet global standards.

"I am hopeful the new course will boost the financial skills of people joining this profession. We need to develop a dynamic system in our institutions and human resources to meet the global benchmarks and requirements," Modi said.

"We will have to see how we can bring technology in the CA field. If chartered accountant firms think of technological innovation, new software, it will open a new market for you."

He called upon CAs to  help fight black money by warning those with black money that they would not be spared and that such people would face more difficulties when Switzerland begins automatic information exchange with India in the next two years.

Stating that only 3.2 million Indians have declared over Rs10 lakh income, despite several times more being in high-end professions, he said, only accountants can help unearth ill-gotten wealth.

''Your signature is more powerful than PM's and government also believes the accounts signed by you,'' he said, adding that CAs have a big responsibility to ensure that society's ''economic health remains good.''