Problem of Shell companies is widespread.Identifying these companies have became a challenge for the enforcement and investigative agencies as they are used in the wider money laundering activities.
The layers of these paper companies help the money launderers to disguise the root of the transaction from the enforcement agencies.
During the month of May’2017 there was a news that Central Bureau of Investigation (CBI) busted a complicated network of 339 shell companies used for allegedly diverting funds worth Rs 2900 crore illegally. Out of these 339 shell companies 9 were claimed to be from the NSEL Scam.
Companies Related to FTIL
CBI in its probe of bank frauds has found that NSEL run by FTIL was allegedly using nine shell companies namely
- Brinda Commodity Pvt Limited
- Tavishi Enterprises
- Mohan India
- PD Agro Processors
- Dunar Foods
- White Water Foods
- ARK Imports
- Vimaladevi Agrotech
- Yathuri Associates
According to the study conducted by the Riskpro Technology group there are more than 45 Individuals who directly or indirectly played role in the NSEL scam. These individuals are associated with at-least 189 distinct companies.
While CBI has prosecuted these companies on charges of cheating and corruption, it will also share its findings with specialised agencies like SFIO, Income Tax and Enforcement Directorate among others.
What do the Intelligence Reports Say ?
The problem however is not as small as it looks. There are many companies which are identified as the shell companies by using the different parameters by the team of Riskpro. The total number of the shell companies may be as much as 50% of the legitimate companies registered in India.