In response to an unstarred question in the Lok Sabha regarding shell companies in West Bengal, the Ministry of Corporate Affairs clarified that the term “shell company” is not defined under the Companies Act, 2013. However, the Ministry conducts strike-off drives under Section 248(1) to remove companies that have not carried on business for two consecutive financial years, failed to apply for dormant status, or defaulted on statutory incorporation requirements. Based on this process, 2,769 companies were struck off in West Bengal during 2022–23, while no companies were struck off in 2023–24, 2024–25, or during 2025–26 up to November. The Government stated that real-time data validation systems are already in place to detect fake or duplicate Director Identification Numbers. It further highlighted that information on suspicious or potentially fraudulent companies is received through inputs from FIU, CEIB, and State-level coordination mechanisms, which guide inquiries and investigations. In serious cases, probes are assigned to SFIO, and findings are shared with enforcement agencies such as ED, Income Tax, and GST authorities for further action.
GOVERNMENT OF INDIA
MINISTRY OF CORPORATE AFFAIRS
LOK SABHA
UNSTARRED QUESTION NO. 2315
ANSWERED ON Monday, December 15, 2025
Agrahayana 24, 1947 (Saka)
Shell Companies in West Bengal
2315. Shri Jagannath Sarkar:
Will the Minister of CORPORATE AFFAIRS be pleased to state:
a. the number of shell companies identified, struck off, prosecuted or placed under enhanced surveillance in West Bengal during the last three years, along with details of their registered addresses, directors and nature of violations;
b. whether the Government has detected clusters of shell entities operating from identical or high-risk premises in Kolkata, Howrah, Siliguri and Asansol, including those used for hawala, benami transactions, GST fraud or bogus share-capital inflations, if so, the details thereof;
c. whether a real-time data-verification system is being strengthened to detect fake directors, forged KYC submissions and mass DIN misuse originating from the said State, if so, the details thereof; and
d. the extent of coordination with ED, SFIO, Income Tax and GST authorities in cases where shell companies registered in West Bengal have been linked to money laundering, political funding irregularities or organised financial fraud?
ANSWER
Minister of State in the Ministry of Corporate Affairs; Minister of State in the Ministry of Road Transport and Highways.
(Shri Harsh Malhotra)
(a) and (b): The term “Shell Companies” has not been defined in the Companies Act, 2013. However, from time to time, this Ministry carries out Strike-Off drive under Section 248 (1) of the Companies Act, 2013 for striking off such companies which are not carrying on any business or operations for a period of two immediately preceding financial years and has not made any application within such period for obtaining the status of a dormant company under Section 455 of the Act or the subscribers to the memorandum have not paid the subscription which they had undertaken to pay at the time of incorporation of a company and a declaration to this effect has not been filed within one hundred and eighty days of its incorporation under sub-section (1) of section 10A of the Act.
Accordingly, the number of Companies Struck-off under 248(1) of the Companies Act, 2013 during the last 3 years and the current year in the state of West Bengal is as under: –
| Financial Year | Number of Companies Struck-off under Section 248(1) |
| 2022-23 | 2769 |
| 2023-24 | 0 |
| 2024-25 | 0 |
| 2025-26 (till November) |
0 |
| Total | 2769 |
c. The necessary validations and real time data verification system is in place to detect fake or duplicate Director Identification Numbers (DIN).
d. Details of Companies observed to be indulging in suspicious/potentially fraudulent transactions are shared by Financial Intelligence Unit (FIU) reports, CEIB (Central Economic Intelligence Bureau) references, SLCC (State Level Co-ordination Committee) with the Ministry which serves as important inputs in taking up Inquiry/Inspection/Investigation under Sections 206(4), 206(5) and 210 of the Companies Act, 2013 respectively.
Further, in the matter of serious fraud, investigation is assigned to the Serious Fraud Investigation Office (SFIO) under Section 212 of the Companies Act, 2013.
The findings of the Inquiry/Inspection/Investigation reports are also shared with enforcement agencies like Enforcement Directorate (ED), Income Tax (IT) Department, and GST Authorities as the case may be, to enable further course of action against such companies and individuals associated with such companies.
