SHELL COMPANIES : A DEFUNCT

INTRODUCTION
The fact that there are 15 lakh registered
companies in India, and only 6 lakh out of
these companies file their annual returns which
categorically implies that colossal number of
the companies may be indulging in financial
irregularities and therefore warranted a stringent
action against these companies.2Though
not defined under the Companies Act, shell
companies meet statutory requirements in letter
to remain unheeded and unrecognised and have
inconsequential business activities that are used
in tax evasion, money laundering, and converting
black money into white.