Banks urged to put curbs on bank a/cs of deregistered cos

K. R. Srivats New Delhi | Updated on January 10, 2018

Advises banks to impose curbs on bank accounts

After de-registering 2.09 lakh companies for dubious transactions, the Centre has now stepped up action against such entities by bringing in restrictions on the operation of their bank accounts by their existing directors and authorised representatives.

Till the legal status of such companies get restored into ‘active’ status from the current ‘struck off’ status, the directors of such companies will not be able to operate the bank accounts of these companies, the Centre has said.

For this purpose, the Department of Financial Services (DFS) has, through the Indian Banks’ Association (IBA), advised banks to take “immediate steps” to put restrictions on bank accounts of such “struck-off” companies.

Corporates’ beware

Banks have been advised to go in for enhanced diligence while dealing with companies in general and not only on “struck off” companies.

Even if a company has an active status on the website of the Corporate Affairs Ministry but defaults in filing of its due financial statement (s) or annual return (s) of particular of charges on its assets on the secured loan should be seen with suspicion, the Centre has said.

Published on September 05, 2017

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