Lok Sabha Question No. 102 (STARRED), answered on 2019-11-25
Subject: Shell Companies
Ministry: CORPORATE AFFAIRS
Asked by: Poonamben Hematbhai Maadam, Pashupati Nath Singh

## GOVERNMENT OF INDIA

## MINISTRY OF CORPORATE AFFAIRS

ANSWERED ON MONDAY, THE 25 th  NOVEMBER, 2019

## LOK SABHA STARRED QUESTION NO. 102 [AGRAHAYANA 23, 1940 (SAKA)]

## SHELL COMPANIES

## QUESTION

*102. SHRIMATI POONAMBEN MAADAN:

SHRI PASHUPATI NATH SINGH:

Will the Minister of CORPORATE AFFAIRS कारपोरेट कार्यमंत्री

be pleased to state:

- (a)  the  number  of  shell  companies  against  which  the  Central Bureau of Investigation has registered cases during 2015-2018 along with the details of the number of cases registered; (b) the details of irregularities detected during the investigation; the
- (c) the outcome of the action taken against directors/operators of the said shell companies; and (d) the reaction of the Government thereto?

## ANSWER

THE MINISTER FOR FINANCE AND CORPORATE AFFAIRS (Ms. NIRMALA SITHARAMAN) वित्त एिं कॉपोरे ट कार्य मंत्री ( श्रीमती विमयला सीतारमण )

(a) to (d): A statement is laid on the Table of the House.

******

STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF THE  STARRED  QUESTION  NO.  102  FOR  ANSWER  IN  LOK SABHA ON 25.11 .2019.

(a) to (d): Central Bureau of Investigation (CBI) has registered 30 cases against 104 shell companies during the last 4 years i.e. 2015, 2016, 2017 and 2018. Further, during investigation of 108 cases, 894 Shell Companies have been detected wherein irregularities such as falsification of financial statement, bank fraud,  diversion  of  funds,  impersonation,  cheating,  abuse  of official position, criminal conspiracy, criminal misconduct etc. were found. The summary of cases are enclosed at Annexure 'A' & 'B' respectively. Some of the Shell Companies/persons are involved in more than one case.

******

## ANNEXURE-A

## The break-up of 30 cases where CBI has registered cases against shell companies from 2015 to 2018.

| 2015                                         | 2015            |
|----------------------------------------------|-----------------|
| Status of the case                           | Number of cases |
| UNDER TRIAL                                  | 14              |
| CHARGE SHEET FILED                           | 14              |
| NOACTION RECOMMENDED AGAINST COMPANY/ACCUSED | 1               |
| CONVICTION OF THE ACCUSED                    | -               |
| UNDER INVESTIGATION                          | -               |
| CASE CLOSED                                  | -               |

| 2016                                         | 2016            |
|----------------------------------------------|-----------------|
| Status of the case                           | Number of cases |
| UNDER TRIAL                                  | 5               |
| CHARGE SHEET FILED                           | 7               |
| NOACTION RECOMMENDED AGAINST COMPANY/ACCUSED | -               |
| CONVICTION OF THE ACCUSED                    | 2               |
| UNDER INVESTIGATION                          | -               |
| CASE CLOSED                                  | -               |

| 2017                                         | 2017            |
|----------------------------------------------|-----------------|
| Status of the case                           | Number of cases |
| UNDER TRIAL                                  | 3               |
| CHARGE SHEET FILED                           | 3               |
| NOACTION RECOMMENDED AGAINST COMPANY/ACCUSED | -               |
| CONVICTION OF THE ACCUSED                    | -               |
| UNDER INVESTIGATION                          | 3               |
| CASE CLOSED                                  | 1               |

| 2018                                         | 2018            |
|----------------------------------------------|-----------------|
| Status of the case                           | Number of cases |
| UNDER TRIAL                                  | -               |
| CHARGE SHEET FILED                           | -               |
| NOACTION RECOMMENDED AGAINST COMPANY/ACCUSED | -               |
| CONVICTION OF THE ACCUSED                    | -               |
| UNDER INVESTIGATION                          | 1               |
| CASE CLOSED                                  | -               |

The break-up of 108 cases where CBI has registered cases against shell companies from 2015 to 2018.

| 2015                                         | 2015            |
|----------------------------------------------|-----------------|
| Status of the case                           | Number of cases |
| PROCLAMATION ISSUED AGAINST ACCUSED          | 1               |
| UNDER TRIAL                                  | 27              |
| CHARGE SHEET FILED                           | 27              |
| NOACTION RECOMMENDED AGAINST COMPANY/ACCUSED | -               |
| CONVICTION OF THE ACCUSED                    | -               |
| UNDER INVESTIGATION                          | 2               |
| CASE CLOSED                                  | -               |
| PENDING CASE                                 | 3               |
| SANCTION FOR PROSECUTION IS AWAITED          | -               |

| 2016                                                          |                 |
|---------------------------------------------------------------|-----------------|
| Status of the case                                            | Number of cases |
| PROCLAMATION ISSUED AGAINST ACCUSED                           | -               |
| UNDER TRIAL                                                   | 38              |
| CHARGE SHEET FILED                                            | 38              |
| NOACTION RECOMMENDED AGAINST COMPANY/ACCUSED                  | -               |
| CONVICTION OF THE ACCUSED                                     | -               |
| UNDER INVESTIGATION                                           | 6               |
| CASE CLOSED                                                   | -               |
| PENDING CASE                                                  | 5               |
| SANCTION FOR PROSECUTION IS AWAITED                           | -               |
| REVISION PETITION FILED BY SFIO BEFORE SESSION COURT, PATIALA | 1               |

| 2017                                         | 2017            |
|----------------------------------------------|-----------------|
| Status of the case                           | Number of cases |
| PROCLAMATION ISSUED AGAINST ACCUSED          | -               |
| UNDER TRIAL                                  | 7               |
| CHARGE SHEET FILED                           | 7               |
| NOACTION RECOMMENDED AGAINST COMPANY/ACCUSED | -               |
| CONVICTION OF THE ACCUSED                    | -               |
| UNDER INVESTIGATION                          | 13              |
| CASE CLOSED                                  | 1               |
| PENDING CASE                                 | -               |
| SANCTION FOR PROSECUTION IS AWAITED          | -               |

| 2018                                         | 2018            |
|----------------------------------------------|-----------------|
| Status of the case                           | Number of cases |
| PROCLAMATION ISSUED AGAINST ACCUSED          | -               |
| UNDER TRIAL                                  | -               |
| CHARGE SHEET FILED                           | -               |
| NOACTION RECOMMENDED AGAINST COMPANY/ACCUSED | -               |
| CONVICTION OF THE ACCUSED                    | -               |
| UNDER INVESTIGATION                          | 4               |
| CASE CLOSED                                  | -               |
| PENDING CASE                                 | -               |
| SANCTION FOR PROSECUTION IS AWAITED          | 2               |