From C K Nayak
NEW DELHI: Multiple names from the Northeast, including Meghalaya, have come out in the first of its kind ‘name and shame’ exercise by the Centre in the infamous racket involving shell companies.
A shell company is a non-trading entity used as a means for various financial transactions or kept dormant for future use in some other capacity.
The list released by the Ministry of Corporate Affairs (MoCA) gave names of disqualified directors across the nation as well as those associated with struck-off companies including names like Minister Naba Doley from the ruling BJP government in Assam, Sudipta Sen of Sharada Group, Businessmen like Rajesh Himatsingka, Shankar Goenka, among others from Guwahati some of whom have businesses both in Meghalaya and Assam.
The companies in Shillong have been disqualified for violation of section 164(2)(a) under Companies Act, 2013.
MoCA statement had earlier revealed that 1.06 lakh directors of shell companies have been identified for disqualification under the relevant provisions of the Companies Act, 2013.
Government intends to break down the network of such companies and further the fight against black money and money laundering, the statement added.
In the national level, former Kerala Chief Minister Oommen Chandy and jailed politician V.K. Sasikala are some of the prominent names figuring in these lists.
Important names from the Northeast that have been mentioned in the list are those who had been or are directors in the companies which have not filed financial statements for more than three years. They are not eligible for re-appointment as directors in the same companies or for appointment in other companies for five years from the date of non-compliance.
Delhi topped the list with maximum number of directors (74,920). Others are Mumbai (66,851), Hyderabad (41,156), Ernakulam (around 14,000), Cuttack (13,383), Ahmedabad (10,513), Gwalior (9,628), Pune (4,449), Puducherry (1,605), Himachal Pradesh (1,363), Coimbatore (1,299), Shillong (1,290) and Chhattisgarh (889).
Directors (present or former) or their authorised signatories are restricted from operating the bank accounts of these companies. Tough action will be taken on directors if they have siphoned off any money even before the banks were alerted.
Interestingly, there is no clear definition of what shell company is in the Companies Act, or any other Act but typically shell companies include multiple layers of companies that have been created for the purpose of diverting money or for money laundering. Most shell companies do not manufacture any product or deal in any product or render any service.
They are mostly used to make financial transactions. Generally, these companies hold assets only on paper and not in reality. These companies conduct almost no economic activity.
List of Shillong based shell companies and their directors named by Government of India
S.B. International Limited (Director, Rabindra Walia), S.B. International Limited (Director Ramawatar Ashopa), S.B. International Limited (Director Amar Sarda), Assam Valley Agriculture Limited (Director Mamtaz Ahmed), Assam Valley Agriculture Limited (Director Ziarul Hoque), Assam Valley Agriculture Limited (Director Mohammed Hashem), Assam Valley Agriculture Limited (Director Omar Ahmed), Assam Valley Agriculture Limited (Director Kan Pathak), JRT Plantations Private Limited (Director Ooma Tariang), JRT Plantations Private Limited (Director Ramakant Tariang), JRT Plantations Private Limited (Director Julismon Tariang), NUTECH Bamboo Projects Private Limited (Director Rualchhinga Jeddy), NUTECH Bamboo Projects Private Limited (Director Yogaraja), NUTECH Bamboo Projects Private Limited (Director Ramhluna Khiangte), Naga Fragrance Private Limited (Director Dili Solomon).