Tough action against 'dormant' shell companies

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India’s government has launched an enforcement drive against shell companies, including the freezing of their bank accounts and striking seemingly dormant companies from the Register. The government believes that large quantities of cash were deposited in shell companies during November and December 2016 following the ‘demonetisation’ policy announced on November 8th 2016, under which holders of scrapped high-denomination currency notes were told to deposit them in banks.