Registrar of Companies’ across the country have set up Chinese cells to probe shell firms involving Chinese nationals. These shell firms are linked to online betting, loan apps, dating apps and gambling apps and have collected hundreds of crores. The specialised cells are to be headed by Indian Corporate law service (ICLS) officers.
In Hyderabad, 18 companies were identified to have been involved in these practices and ROC has already filed two FIRs against the accused in the case. ROC officials visited the registered addresses of these companies and found that they are not working from these locations. In Vijayawada, four companies and in Bengaluru , around 184 companies have been identified so far.
A huge number of companies involving Chinese nationals were identified in New Delhi and Gurgaon too involving in such activities. Officials from ROC Hyderabad were sent to Bengaluru for probe as more companies are located there.
The Ministry of Corporate Affairs on December 10 2021 has drafted an action plan to probe and act against fraudulent companies in which Chinese and other foreign nationals are involved as per the news item that earlier surfaced in national media including Times of India group on 5th February. ROCs across the country were asked to conduct an inquiries of the companies in two stages.
In the first stage, the documents filed by the directors and the company from the stage of application of DIN (Director Identification Number) and incorporation of the company will be examined. Annual documents, change of directors and other documents filed from time to time are being examined.
The investigators shall identify other companies associated with the directors of the fraudulent companies and the companies which have similar modus operandi. In the final stage of the probe, a report has to be submitted which shall contain fraud committed, quantum of the amount involved and non-compliances under the Companies Act and LLP act and also the course of action.