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Parliament


Members including BJP MP R K Singh demand changes in laws to take on shell companies

Members including BJP MP R K Singh demand changes in laws to take on shell companies

New Delhi, Aug 11 (UNI) Members in the Lok Sabha including from the ruling BJP today strongly countered the government version that the existing provisions of the laws are good enough to deal with shell companies. The issue was flagged off by BJP member from Ara R K Singh during Question Hour - when he referred to the response from Finance Minister Arun Jaitley that the present laws can handle individuals forming the shell and dormant companies and penal actions too could be initiated. "I am aware of a place in Bihar where from one room office, they had as many as 187 companies. These companies allegedly funded one political party....If such is the case, this definitely calls for changes in the laws," said Mr Singh, who was also Union Home Secretary. He was soon supported by other members like Shashi Tharoor (Congress) and Baijayant "Jay" Panda (Biju Janata Dal). Mr Panda said while government has been taking actions against shell companies from time to time, the people behind these companies have remained "incorrigible". He suggested that whether Aadhaar card or other biometric process could be introduced to put a check on the repeat conduct of these individuals. Mr Tharoor said the PMO itself has said not many people have accepted of making higher income and thereby in the process concealed information. At one point even Speaker Sumitra Mahajan said, "they are shelf companies...they keep only in shelves" leading the House to a mild round of laughter. Mr Jaitley maintained while government has taken actions against shell companies, there was also need to "keep a right balance" as the government of the day also wants to ensure and promote the very idea of "ease of doing business". He said Mr Panda's suggestion on use of biometric measures was a good idea mooted and the government would apply its mind on it. Mr Jaitley further said under various provisions of the Companies Law, the Benami Transactions laws and IT Act, the government has already de-registered 1.78 lakh companies in last three years. UNI DEVN RSA 1322

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