Mains Paper 2: Governance | Citizens charters, transparency & accountability and institutional and other measures
From UPSC perspective, the following things are important:
Prelims level: Read B2B.
Mains level: One more step by the government to counter money laundering, black money issues.
Collection of data
- The government has collected startling data on multiple accounts of 5,800 shell companies
- These 5,800 companies are from those 200,000 companies which were struck off by the registrar of companies (RoC)
How government got these shell firms?
- The government had asked for data from banks about over 200,000 companies whose accounts were frozen
- The data from 13 banks reveals that 5,800 companies have more than 12,000 accounts
- The companies deposited and withdrew huge amounts from banks post-demonetisation, while they had meagre deposits before November 8, 2016
- According to an official statement these companies, deposited more than Rs 4,570 crore in their accounts and withdrew Rs 4,552 crore, post-demonetisation
- Before demonetisation, these companies had a balance of Rs 22.05 crore, in banks
Other steps taken by the government
- The investigative agencies have been asked(by the government) to complete necessary investigation in a time-bound manner
- The government also disqualified a number of directors associated with these companies. There are around 100,000 directors
Recently, we have written a newscard on the same issue. Complement this with that newscard. It will help you to understand the issue.