NEW DELHI: The Central government on Tuesday said that the Enforcement Directorate (ED) has initiated probe against 1,326 companies, which had been under its lens for violating money laundering laws.
“Around 1,326 companies are under the scanner of Enforcement Directorate for violating money laundering laws,” Shiv Pratap Shukla, Minister of State in the Ministry of Finance, told Rajya Sabha.
However, no company has been deregistered for money laundering charges so far.
“While searches and raids have been already conducted at some of these companies, in the coming months, there will be more raids and arrests. We also have (info on) few companies that have made big investments overseas post demonetisation,” a senior ED official told TNIE.
Last week, the ED had initiated a probe against the managing director of Usha Martin, the country’s largest steel wire rope maker, in connection with alleged violations of the Foreign Exchange Management (FEMA) Act.
The ED has also ordered investigation into the true ownership of 68 companies for “exceptional” deposits and withdrawals made during demonetisation.
“The government has also ordered investigation into the true ownership of 68 companies under Section 216 read with Section 210(1)(c) of the Companies Act, 2013, which have deposited and withdrawn funds in an exceptional manner from their bank accounts during the demonetisation period,” the minister said.
According to sources, 17.42 lakh suspected accounts have come under the scanner of both the ED and Income-Tax department.
The firms were under the agency’s scanner as they had reportedly used third-party bank accounts to stash their unaccounted money. Based on the data and closer investigation, the ED has zeroed in on the 1,326 companies.
After investigation, show cause notices are issued and due process is followed for recovery of evaded tax.
In the last few weeks, ED had speeded up its investigation and attached assets and bank accounts for over two dozen companies for money laundering during demonetisation.