Best of PIB: 11 Feb 2017 for UPSC Exam

Punitive action against shell companies

  • A task force has been set up by the government
  • It will be co-chaired by the Revenue Secretary (Mr Hasmukh Adhia) and Corporate Affairs Secretary (Mr Tapan Ray)
  • There are about 15 lakh registered companies in India of which only around 6 lakh file tax returns which means large number of these companies may be involved in illegal activities
  • The government in order to control menace of black money, tax evasion, money laundering has decided to take action against erring shell companies (the companies which do not conduct any business activities and are involved in Havala/ money laundering), will follow the “Whole of Government Approach” which involves
    • Co-ordinated efforts will be undertaken by various departments
    • Red flag indicators will be used in identifying such shell companies
    • Database of such companies and their directors will be built by accumulating information
    • Punitive actions such as freezing of bank accounts, striking off the names of the dormant companies, invocation of Benami Transactions (Prohibition) Amendment Act 2016 will be taken

About Benami Transactions (Prohibition) Amendment Act 2016

  • Was introduced in Lok Sabha in May 2015
  • The bill seeks to amend Benami Transactions Act 1988
  • The act prohibits benami transactions and provides for confiscating benami properties

The act

  • Amends the definition of benami transactions
  • Establish adjudicating authorities and an Appellate Tribunal to deal with benami transactions
  • Specifies the penalty for entering into benami transactions. 

 

First Indigenous Airborne Early Warning and Control System (AEW&C)

  • AEW&C shall be handed over to the Indian Air Force (IAF), on 14th February during Aero India 2017
  • The AEW&C System is a system of systems populated with state-of-the art Active Electronically Scanned Radar, Secondary Surveillance Radar, Electronic and Communication Counter Measures etc, voice communication system and self protection suite
  • This system has been developed through collaborative efforts between DRDO and the IAF