Centre planning to deregister 400 companies in next three months: Report

NEW DELHI: A recent report has claimed that the Narendra Modi government has decided to take strong action against several Chinese companies that siphon money illegally from India. According to the report, the central government has decided to deregister 400 Chinese companies operating across 17 states in the country in the next three months. It is alleged that these companies are operating illegally in India and laundering black money.

Although most of these companies are headed by Indians, the money is invested in China. These include loan apps, online job companies, etc. According to sources close to the central government, it has been found that some of these companies are diverting money and are involved in financial frauds.

The Ministry of Corporate Affairs (MCA) has already launched an investigation against around 40 Chinese companies that manufacture mobile screens and batteries. Around 600 Chinese companies are being closely monitored by the Centre. Among these, 300 to 400 companies are involved in suspicious activities. Although many companies have appointed Indian directors, the money transactions take place in China. Even the bank accounts of most of these companies are in China.

Another important finding is that these companies operating in India do not record or report financial transaction data to the authorities. The central government has observed the rapid growth of digital lending companies in recent years. Many companies undertake money transactions in India without even complying with the Reserve Bank of India's standards. This is not the first time the central government is planning to ban Chinese companies and apps in the country.