Hyderabad is the house for the second highest number of Shell Companies in the country only after the National Capital, New Delhi. Companies of Registrar identified that there are 1,42,000 companies which did not do a single transaction in the last two financial years.
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Delhi has 26000 of them while Hyderabad has 24,338. They were served notices about why they are inactive even after two years of their registration. If they do not come up with a proper explanation, their registration will be canceled.
Shell Companies are mostly used for Money Laundering. Once the companies registration is canceled, they can not be on the board of any other companies for a period of five years. Bengaluru, Chennai, Kolkata, Ahmedabad, and Pune are the next in the list.
