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This is one more step taken by the Government to identify and eliminate shell companies. The government has taken a number of measures to crackdown shell companies i.e., companies operating only on a paper and being vehicles of either round-tripping or money laundering or to obscure ownership. First, during the year 2018, Government struck off about 2 lakhs companies who failed to file their financial statements or annual returns for two or more successive years and secondly more than three lakh directors were disqualified for non-filing of annual returns by their companies for three or more years

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