Hyderabad: The Corporate Affairs Department today organized raids on hollow companies for resorting to gross irregularities in the Jubilee Hills area here. The officials found out that those companies were transforming black money into white by indulging in hundreds of crores of rupees of transactions.
They cracked the scam and found they were maintaining 114 “suitcase” companies with single address. It was also found that those companies were paying salaries in crores though they have no income. The officials also found that they have been paying salaries in lakhs while showing employees as directors of those companies. The Corporate officials said they set up these types of companies only to transform the black money into white currency. (NSS)