Modi: 48 hours before GST, 1 lakh cos lost registration for post-demonetisation irregularities?

He added that two lakh other registered companies are under the scanner for their involvement in what looked like dubious transactions in the aftermath of demonetisation.

Prime Minister Narendra Modi said on Saturday that his goverment had deregistered one lakh companies which had allegedly engaged in suspicious transactions post-demonetisation. 

"Forty-eight hours before the launch of GST, we, by one stroke of pen, cancelled the registration of one lakh companies which, based on the mining of deposits made in banks after November 8, were found to have engaged in serious irregularities," said Modi. 

He added that two lakh other registered companies are under the scanner for their involvement in what look like dubious transactions in the aftermath of demonetisation.

He also said the government has identified 37,000 shell companies which engage in the laundering of black money. 

The Times of India said Modi's comments are a clear indicator that the government is "moving swiftly to turn the switch to GST and its successful implementation as part of his campaign against black money and corruption". 

Modi was speaking at a function organised to mark the foundation day of the Institute of Chartered Accountants in India. 

"The decision to de-register one lakh companies in one stroke is reflective of the government's intent as well as a pointer to the will power of the political class. Such decisions are not taken on the basis of political calculations, they can be taken only by those who love the country," Modi had said at the function.