Hyderabad: As many as 114 companies are operating out of a single room, complete with balance-sheets, directors and their salaries. It was revealed during raids in Hyderabad.
A team of eight officials visited an address on the third floor of the Fortune Monarch mall in the city’s Jubilee Hills area this morning and the officials were stunned by what they found.
Most of the firms of them are believed to be shell companies were operating from a single room.
According to reports, at least 50 of the 114 companies show losses of Rs 8 crore to 15 crore and have no business operations.
Sources say the companies were lending to each other and may have been created to circulate money. However, their directors are drawing salaries and seem to be related to each other.
And there are directors who are managing 25-30 companies each when the law in India does not allow one person to be director for more than 20 companies.