Indian Prime Minister Narendra Modi disclosed that the registration of over 100,000 companies which had allegedly engaged in suspicious transactions post-demonetisation, were scrapped as he sought to cast the goods and services tax as his second strike against corruption. “Forty-eight hours before the launch of GST, we, by one stroke of pen, cancelled the registration of 100,000 companies which, based on the mining of deposits made in banks after November 8, were found to have engaged in serious irregularities,” Modi said.
He added that another 200,000 registered companies were under the scanner for involvement in what looked like dubious transactions following demonetisation. Speaking at a function organised to mark the foundation day of the Institute of Chartered Accountants in India, Modi said the government had identified 37,000 shell companies which engage in money laundering and help those with black money. “The decision to de-register 100,000 companies in one stroke is reflective of the government's intent as well as a pointer to the will power of the political class. Such decisions are not taken on the basis of political calculations, they can be taken only by those who love the country,” Modi said.
He asked the chartered accountants to help with the successful implementation of GST, and curb tax evasion. “I invite you to join the festival of honesty,” he said. The almost three-hour long function was telecast live by the national broadcaster and chief ministers of BJP-ruled states and Union ministers joined chartered accountants in state capitals to listen to his speech. Modi said just as his government tries to promote cleanliness through the Swachh Bharat Abhiyan, they were also seeking to clean the economy by acting tough with those who looted the country. Just like his speech in the Central Hall of Parliament on Friday to mark the launch of GST, the PM said the measure will help curb tax evasion and generate resources to help the poor and needy.
