(This story originally appeared in on May 28, 2018)

NEW DELHI: The ministry of corporate affairs has identified a fresh set of 2.25 lakh companies, which did not make the requisite filings for 2015-16 and 2016-17, for striking down their names as part of the crackdown against socalled “shell companies”.The registrar of companies is in the process of dispatching notices to these entities and a failure to file returns will result in them being deregistered over the next few months, sources told TOI.This is the second straight year when the government is planning to act against those who failed to file the required returns under the Companies Act. Deregistration of companies also has an impact on directors, who can be disqualified from holding board positions, as was the case last time when some top names in India Inc also faced the heat before getting respite from the courts.During the last round, the government had served notices to nearly 3 lakh companies that had not filed returns since 2013-14 and finally 2.26 lakh entities saw their names being struck off. In all, notices had been issued to 3.1 lakh directors from the companies whose names had been struck off.Around 98,000 director identification numbers have been revived, sources said, adding that about 14,000 directors associated with close to 35,000 companies have availed of the recent Condonation of Delay Scheme (CoDS).Sources said that the government has decided to pursue its action against the socalled shell companies , given that the data has also thrown up important details for the tax authorities, which have found evidence of routing of funds through multiple layers, often involving cash payments. Several of the companies under the scanner had made significant transactions during the demonetisation drive when large sums of cash were deposited.The tax department has sought more data related to the 2.26 lakh companies, which were deregistered amid suggestions that the government should define “shell companies” in the Companies Act. Sources said that there is no decision on having a separate definition at the moment as the current regime has been found to be sufficient to deal with the issue.