In Modi's demonetisation 6,700 crore of black money traced in India!

Narendra Modi government’s crackdown on shell companies has proven very successful. It has uncovered $1 billion (around Rs 6,700 crore) in suspicious cash deposits as part of its investigations. The government had de-registered over 200,000 companies and restricted their bank accounts in a concerted effort to cut down the shadow economy in the country. Now it is working on limiting property transfers to trace any further generation of black money.
This $1 billion has been unearthed by investigating around 20,000 companies after demonetisation last year. Another 1,505 companies are being investigated by the government’s Serious Fraud Investigation Office for allegedly violating the Companies Act. It is examining another 809 listed companies, found untraceable by SEBI, to check their status, existence of their offices and directors.
“Our purpose is to increase compliance so that investors’ confidence increases in Indian companies. This will also attract foreign investors who would be sure that the companies they are investing in are genuine. We will have to curb shell companies if we want to increase confidence of investors in India,” said PP Chaudhary, junior minister for corporate affairs.
The ministry of corporate affairs struck off the names of 217,239 companies for failing to comply with regulatory requirements and disqualified directors on these companies’ boards from assuming directorship at other firms.
“The final list of disqualified directors may touch up to 450,000. The companies which deposited money during demonetization are being investigated using artificial intelligence,” said Chaudhary.
The finance ministry is also developing a state-of-the-art early warning system using artificial intelligence that will throw up red flags and provide information in case a company’s financial health deteriorates or if it’s transactions are suspect.
“In the absence of technology we can be reactive but not proactive. To be proactive it is necessary that we develop artificial intelligence.”
The Modi government has been diligent in its efforts to tackled the menace of black money. Prime Minister Modi has repeatedly said that what has happened in the past has happened, but we must ensure that black money is curbed in the future. This is exactly what he’s attempting to do.