The Ministry of Corporate Affairs is set to strike down an additional 1 lakh shell companies after weeding out 70,000 firms earlier,
Business Standard reported.
The development comes after the ministry sent show cause notices to 225,000 companies, out of which 70,000 firms have already been taken down, the report said citing a senior corporate affairs ministry official.
The first list of suspected shell companies had 300,000 entities, whose bank accounts were frozen and transactions being scrutinized by the ministry, the report said.
In the second phase of action against shell companies, the ministry is also trying to trace the directors of 'vanishing' companies, according to the report.
