Shell firms crackdown: Ex-J&K CM Omar Abdullah and actor Mohanlal among disqualified directors

Moneycontrol News 

Former Jammu and Kashmir Chief Minister Omar Abdullah and Malayalam film star Mohanlal are among the list of thousands of disqualified directors in government’s crackdown on shell companies, as per a report in Economic Times.

Maharashtra sales tax commissioner Rajeev Jalota was also named in the list released by the corporate affairs ministry.

Moneycontrol was the first to report on August 11 that the Financial Intelligence Unit has prepared a list of more than 13,000 shell companies.

Moneycontrol also has the full list of shell companies, which also includes the 331 companies flagged off by the Ministry of Corporate Affairs to SEBI.

The government has prepared a list of overall 16,794 shell companies with inputs from all investigative agencies. The list is mostly comprised of real estate, finance and entertainment companies.

Also Read: Shell companies’ directors face up to 10 years imprisonment for siphoning off funds

The directors have been disqualified under Section 164 (2)(A) of the Companies Act.

Entities named included state government-owned firms such as MIDC infrastructure Projects Ltd, of which Jalota is a named a director, and Jammu and Kashmir State Power, where Abdullah is also part of the board.

A senior income tax official had previously told Moneycontrol that there are several real estate companies that are under the scanner for both Benami property and unaccounted money.

Directors who have been disqualified from holding posts in companies that failed to submit financial returns for three years in a row will not be eligible for reappointment as board members in any other company for a period of five years from the date of default, as per an earlier order.

This will now spell fresh trouble for promoter-directors as now they won’t be able to float new companies.

Malayalam movie star Mohanlal has also been disqualified for default in his firm Pranavah Taste Buds which was sold in 2007.

Also Read: Govt orders shuttering of 1.75 lakh shell companies found to be funnelling black money: Modi

The corporate affairs ministry has disqualified over 100,000 directors of defaulting companies.

The government along with naming the defaulting directors is analysing data available with the registrar of companies.

Here is the full list of companies: