<!– /11440465/Dna_Article_Middle_300x250_BTF –>Aiming to improve efficiency and reduce time taken for inspection, the Ministry of Corporate Affairs plans to introduce new technology, including Artificial Intelligence (AI), to scrutinise books of firms registered under the Registrar of Companies (RoC). The move is expected to prevent financial fraud, put a curb on black money, and crack down on shell companies.”We will utilise technology to the maximum. In the coming months, we will implement Artificial Intelligence in our systems. We will build an early warning system, which will send signals if there is any heightened activity or fraudulent financial activity in the registered firms. The ministry will also start scrutinising accounts of active registered firms soon,” P P Chaudhary, Minister of State for Corporate Affairs, and Law and Justice, told DNA.He further said:”Currently, we have a robust system for data mining, but with the use of technology, the response time will be immediate. We have to be proactive rather than reactive. Use of technology will strengthen the corporate structure, which will enable proper administration of companies. It will also increase confidence of domestic as well as foreign investors.””All these measures will help in finding the true owners of the firms. It will also help locate benami properties, besides putting a curb on unscrupulous activities, creating a transparent and robust system,” he added.The ministry had recently struck off nearly 2.24 lakh companies from its registered list for failing to comply with regulatory requirements, and freezed their bank accounts. These companies were inactive and were not carrying out business activities for quite some time. Additionally, 3 lakh directors from these shell companies were also disqualified.Besides, the ministry has asked chief secretaries of all states to identify movable assets and immovable properties of struck off companies and restrict the transfer of such assets, till these companies are restored. States have also been requested to share information with the ministry in a time-bound manner.Nearly 16.87 lakh companies are registered with the RoC. The Ministry of Corporate Affairs regulates these unlisted firms.

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Ministry to use Artificial Intelligence for keeping a tab on firms