The billionaire founder of South Korean internet conglomerate Kakao was arrested early Tuesday, a Seoul court said, accused of manipulating stock prices during the acquisition of K-pop powerhouse SM Entertainment.

Founded in 2010, Kakao has grown to be a sprawling empire and owns everything from a major online bank to South Korea's largest taxi-hailing app, plus KakaoTalk -- the country's biggest messaging app which is installed on 90 percent of phones.

It also has a vast entertainment portfolio, encompassing music labels and talent management, which it augmented significantly last year by securing a controlling 39.87 percent stake in SM Entertainment, becoming its largest shareholder.

Prosecutors accuse Kakao of buying 240 billion won ($173 million) worth of SM shares on 553 occasions in February 2023 at inflated prices in a deliberate effort to thwart a takeover bid by HYBE, the agency behind K-pop megastars BTS.

Also read:&nbsp;<a href="https://www.wionews.com/business-economy/unveiling-the-fiscal-blueprint-analysing-indias-economic-strategy-and-revenue-sources-743273">Unveiling the fiscal blueprint: Analysing India’s economic strategy and revenue sources</a>

HYBE had purchased a 14.8-percent stake from SM's founder, Lee Soo-man, and proposed buying more shares at 120,000 won each, but withdrew its attempt after SM's stock prices soared.

The Seoul Southern District Court approved an arrest warrant for Kakao founder Kim Beom-su, citing risks of him fleeing and destroying evidence, it said in a statement.

Authorities have also questioned other Kakao executives, prosecutors said.

At an emergency Kakao group meeting last week, Kim said that it was a "pity" that the situation had occurred while "group members are working together to renovate management and innovate AI-based technology".&nbsp;

He later said the charges against him were "not true".

"I believe the facts will be revealed in the end as I have never ordered or tolerated any illegal activities," Kim said, according to a press release sent to AFP by the company on Tuesday.

Experts said that the detention of the firm's head could cause problems for the company.

"Kakao's AI-based innovation will likely meet difficulty due to the absence of the head of the company, and the group will have to focus its efforts on eliminating total risk and judicial risk," said Choi Kyoung-jin, a law professor at South Korea's Gachon University.&nbsp;

"The risk of the group due to the leader being absent from Kakao will probably continue for a considerable period of time," he added.

"Kakao will need to reorganise its governance."

Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

The billionaire founder of South Korean internet conglomerate Kakao was arrested early Tuesday, a Seoul court said, accused of manipulating stock prices during the acquisition of K-pop powerhouse SM Entertainment.

The billionaire founder of South Korean internet conglomerate Kakao was arrested early Tuesday, a Seoul court said, accused of manipulating stock prices during the acquisition of K-pop powerhouse SM Entertainment. Founded in 2010, Kakao has grown to be a sprawling empire and owns everything from a major online bank to South Korea's largest taxi-hailing app, plus KakaoTalk -- the country's biggest messaging app which is installed on 90 percent of phones. It also has a vast entertainment portfolio, encompassing music labels and talent management, which it augmented significantly last year by securing a controlling 39.87 percent stake in SM Entertainment, becoming its largest shareholder. Prosecutors accuse Kakao of buying 240 billion won ($173 million) worth of SM shares on 553 occasions in February 2023 at inflated prices in a deliberate effort to thwart a takeover bid by HYBE, the agency behind K-pop megastars BTS. Also read: Unveiling the fiscal blueprint: Analysing India’s economic strategy and revenue sources HYBE had purchased a 14.8-percent stake from SM's founder, Lee Soo-man, and proposed buying more shares at 120,000 won each, but withdrew its attempt after SM's stock prices soared. The Seoul Southern District Court approved an arrest warrant for Kakao founder Kim Beom-su, citing risks of him fleeing and destroying evidence, it said in a statement. Authorities have also questioned other Kakao executives, prosecutors said. At an emergency Kakao group meeting last week, Kim said that it was a "pity" that the situation had occurred while "group members are working together to renovate management and innovate AI-based technology". He later said the charges against him were "not true". "I believe the facts will be revealed in the end as I have never ordered or tolerated any illegal activities," Kim said, according to a press release sent to AFP by the company on Tuesday. Experts said that the detention of the firm's head could cause problems for the company. "Kakao's AI-based innovation will likely meet difficulty due to the absence of the head of the company, and the group will have to focus its efforts on eliminating total risk and judicial risk," said Choi Kyoung-jin, a law professor at South Korea's Gachon University. "The risk of the group due to the leader being absent from Kakao will probably continue for a considerable period of time," he added. "Kakao will need to reorganise its governance." Disclaimer: This story has been published from a news agency feed with minimal edits to adhere to WION's style guide. The headline may have been changed to better reflect the content of the story or to make it more suitable for WION audience.

Founder of South Korea's tech giant Kakao arrested for stock manipulation

Japanese carmaker Nissan will buy a stake of up to 15 per cent&nbsp;in Renault's electric vehicle (EV) unit Ampere, the pair said on Monday, in a reboot of a long and sometimes contentious alliance that will also create more common car platforms.

The agreement, which came after months of tense talks, includes the previously announced reduction of Renault's stake in Nissan to put the two on a more equal footing, extending for an initial period of 15 years a partnership that has been in place since 1999 and also includes Mitsubishi Motors.

"Previously the alliance was more about synergies... and global volumes," Nissan chief operating officer Ashwani Gupta told Reuters. "The next 15 years is about how we become the number one value creator for each other and our shareholders."

The lopsided relationship between the two car makers, which was deeply strained by the 2018 arrest of its architect and former chairman, Carlos Ghosn, amid a financial scandal, had long been a source of friction among Nissan executives.

While Renault bailed out Nissan two decades ago, it is the smaller automaker by sales.

"I consider that what we have agreed is a much better set-up than what we have had in the last past few years," Renault CEO Luca de Meo told a presentation of the new-look alliance in London.

"We have now a new governance scheme that is much more straightforward, we can now operate like a normal company. Seen from Renault, (it) is about regaining some strategic agility without breaking necessarily the ties and the synergies that were existing."

The size of Nissan's investment or even a firm commitment to put money into the EV unit, Renault's flagship business which is due to be listed on the market, has so far been unclear.

"We regard Ampere as an enabler for Nissan to participate in new business opportunities in Europe," Nissan chief executive Makoto Uchida told reporters and analysts.

No financial details were disclosed regarding the valuation of the business, with de Meo saying the market would decide. Some sources have indicated it could be worth up to 10 billion euros.

Mitsubishi CEO Takao Kato said Ampere will also form part of its European EV strategy and the company would "further study" its share participation.

Renault will reduce its stake in Nissan to 15% from around 43% by transferring a 28per cent&nbsp;stake into a French trust.

The French carmaker will have the flexibility to sell the Nissan shares held in the trust but "it has no obligation to sell the shares within a specific pre-determined period of time," the statement on Monday said.

De Meo said Renault will act in "good faith" and sell off its Nissan shares in "an orderly manner". When it does sell, Nissan will have a right of first offer.

The companies detailed planned joint projects in Europe, India and Latin America, and will work together in the EV business, electronics and solid-state batteries.

Renault's shares were down around 0.7% by 1225 GMT.

Nissan and Renault have lagged during alliance https://fingfx.thomsonreuters.com/gfx/mkt/gdpzqdkakvw/nissan.PNG

The sweeping remake of the 24-year-old alliance gets underway after talks were dragged out by concerns over the sharing of intellectual property as Renault sought tie-ups with companies outside the partnership, including China's Geely.

Renault's board approved the deal on Sunday night, according to a source. Nissan's board also approved it early on Monday, the source said.

CLSA analyst Christopher Richter said the revamped alliance could enable Nissan and Renault to work together a little more harmoniously, but he noted that Honda and General Motors have built a partnership that includes jointly developing lower-cost EVs together without any need for a capital relationship.

He added that as Renault's brand is not seen a strong one, it could be tough for it to raise a lot of money for Ampere from the market.

"That's why I think they're going to push Nissan to pay too much."

Japanese carmaker Nissan will buy a stake of up to 15 per cent in Renault's electric vehicle (EV) unit Ampere, the pair said on Monday, in a reboot of a long and sometimes contentious alliance that will also create more common car platforms.

Japanese carmaker Nissan will buy a stake of up to 15 per cent in Renault's electric vehicle (EV) unit Ampere, the pair said on Monday, in a reboot of a long and sometimes contentious alliance that will also create more common car platforms. The agreement, which came after months of tense talks, includes the previously announced reduction of Renault's stake in Nissan to put the two on a more equal footing, extending for an initial period of 15 years a partnership that has been in place since 1999 and also includes Mitsubishi Motors. "Previously the alliance was more about synergies... and global volumes," Nissan chief operating officer Ashwani Gupta told Reuters. "The next 15 years is about how we become the number one value creator for each other and our shareholders." The lopsided relationship between the two car makers, which was deeply strained by the 2018 arrest of its architect and former chairman, Carlos Ghosn, amid a financial scandal, had long been a source of friction among Nissan executives. While Renault bailed out Nissan two decades ago, it is the smaller automaker by sales. "I consider that what we have agreed is a much better set-up than what we have had in the last past few years," Renault CEO Luca de Meo told a presentation of the new-look alliance in London. "We have now a new governance scheme that is much more straightforward, we can now operate like a normal company. Seen from Renault, (it) is about regaining some strategic agility without breaking necessarily the ties and the synergies that were existing." The size of Nissan's investment or even a firm commitment to put money into the EV unit, Renault's flagship business which is due to be listed on the market, has so far been unclear. "We regard Ampere as an enabler for Nissan to participate in new business opportunities in Europe," Nissan chief executive Makoto Uchida told reporters and analysts. No financial details were disclosed regarding the valuation of the business, with de Meo saying the market would decide. Some sources have indicated it could be worth up to 10 billion euros. Mitsubishi CEO Takao Kato said Ampere will also form part of its European EV strategy and the company would "further study" its share participation. Renault will reduce its stake in Nissan to 15% from around 43% by transferring a 28per cent stake into a French trust. The French carmaker will have the flexibility to sell the Nissan shares held in the trust but "it has no obligation to sell the shares within a specific pre-determined period of time," the statement on Monday said. De Meo said Renault will act in "good faith" and sell off its Nissan shares in "an orderly manner". When it does sell, Nissan will have a right of first offer. The companies detailed planned joint projects in Europe, India and Latin America, and will work together in the EV business, electronics and solid-state batteries. Renault's shares were down around 0.7% by 1225 GMT. Nissan and Renault have lagged during alliance https://fingfx.thomsonreuters.com/gfx/mkt/gdpzqdkakvw/nissan.PNG The sweeping remake of the 24-year-old alliance gets underway after talks were dragged out by concerns over the sharing of intellectual property as Renault sought tie-ups with companies outside the partnership, including China's Geely. Renault's board approved the deal on Sunday night, according to a source. Nissan's board also approved it early on Monday, the source said. CLSA analyst Christopher Richter said the revamped alliance could enable Nissan and Renault to work together a little more harmoniously, but he noted that Honda and General Motors have built a partnership that includes jointly developing lower-cost EVs together without any need for a capital relationship. He added that as Renault's brand is not seen a strong one, it could be tough for it to raise a lot of money for Ampere from the market. "That's why I think they're going to push Nissan to pay too much."

In alliance reboot, Nissan to buy up to 15% stake in Renault EV unit

Apple Inc's plea to avoid paying $440 million in damages to VirnetX Inc for using the patent licensing firm's security technology without permission in features such as FaceTime video calling was denied by the US Supreme Court.

Apple Inc's plea to avoid paying $440 million in damages to VirnetX Inc for using the patent licensing firm's security technology without permission in features such as FaceTime video calling was denied by the US Supreme Court. Apple's appeal was rejected by the judges in this case which spans a decade, wherein a Texas jury had discovered in 2016 that the iPhone manufacturer had infringed VirnetX's patents, following which the patent licensing firm was awarded $302 million. The amount was increased to $439.7 million including interest and other costs. Also Read: US jury asks Apple to pay $145 million in damages to Canada's WiLan In 2010, the Nevada-based VirnetX filed a lawsuit against California-based Apple of infringing four patents for secure networks, known as virtual private networks, and secure communications links. VirnetX was adamant that Apple infringed with its FaceTime and VPN on Demand features in products such as the iPhone and iPad. The judgement against apple was upheld last year by the US Court of Appeals for the Federal Circuit in Washington. During the hearings, Apple and other tech titans requested a review of the validity of VirnetX patents by a tribunal of the US Patent and Trademark Office. Also Read: Samsung to pay $539 million to Apple for copying patented smartphone designs, features Key parts of the patents at issue, in this case, were cancelled by the Tribunal but in separate decisions issued last year, the Federal Circuit set aside certain of the tribunal's rulings which brought VirnetX closer to collecting damages from Apple. The world-renowned mobile phone manufacturer appealed to the Supreme Court, arguing that the damages should be recalculated because the specific patents VirnetX accused it of infringing with FaceTime were nearly wiped out. Also Read: Top US court rejects Samsung's appeal on patent loss to Apple In a court filing, Apple called the Federal Circuit's opposition to indulge its demands "legally wrong and grossly unfair." The company also stated that lower courts unlawfully granted requests from VirnetX and granted them compensation for damages far beyond the value of the patented invention. VirnetX issued a statement saying that "The entire damages award ... remains supported by claims that a jury - and the Federal Circuit - found valid years ago and that have not been cancelled since."

Apple appeals rejected by US Supreme Court in legal battle with VirnetX

New microprocessors have been launched by Intel Corp, a device which includes a second-generation Xeon processor for data centres and a 10nm chip for wireless 5G base stations.

New microprocessors have been launched by Intel Corp, a device which includes a second-generation Xeon processor for data centres and a 10nm chip for wireless 5G base stations. Sales of server chips have been boosted after an increase in demand from cloud-computing companies, which has resulted in strong results from Intel and its rival AMD Corp. Also Read: Apple, Intel file antitrust case against SoftBank- Owned firm over patent practices The market for server chips has been dominated by Intel's Xeon chips, but the debut of its rival EPYC processors that earned positive reviews has allowed AMD to gain ground in the business. Though the new Xeon chips afford a better performance on the dollar as compared to its previous generation, Intel is confident that the 10nm chip, P5900, will help it become the leading silicon provider in base stations by 2021. 10nm and 7nm products will be launched by Intel in 2020, while AMD has already launched several chips based on the smaller 7nm architecture. Also Read: Wall Street falls as investors cautious on trade; Intel slides 10nm chip technology sale by Intel has been facing a lot of struggles, which has cost the company its lead to rivals in the race to supply to the new data economy which includes 5G chips, 5G devices, artificial intelligence and autonomous vehicles. Though the company had intended to launch the new chip in Barcelona during the Mobile World Congress, the event was cancelled due to rising paranoia over the COVID-19 outbreak all over the world.

Intel unveils new Xeon chip, COVID-19 delays product

Samsung Electronics has launched smartphone delivery services for customers to test its new products, as the spread of the coronavirus has prompted the tech giant to cancel promotional events and brace for weak store sales.

Samsung Electronics has launched smartphone delivery services for customers to test its new products, as the spread of the coronavirus has prompted the tech giant to cancel promotional events and brace for weak store sales. The move highlights efforts made by the global smartphone industry, one of the tech sectors most hurt by the virus outbreak in China, to minimise the impact on business. Analysts say the virus may slash demand for smartphones by half in the first quarter in China, the world's biggest market for the devices. Also Read: Apple prepares for Coronavirus fallout, Samsung fears it may affect earnings Apple Inc warned on Monday it was unlikely to meet a sales target set just three weeks ago, while Xiaomi Corp had to live-stream its smartphone launch event last week because of nationwide restrictions on travel and large gatherings. Samsung, which unveiled a new foldable smartphone and a trio of its flagship Galaxy S20 models last week, is also curtailing brick-and-mortar marketing. The South Korean smartphone maker has decided to sharply cut the number of in-store "experimental zones," where consumers can try out the latest phones, and skip promotional events such as "Galaxy fan parties" for the latest device over worries about the spread of the virus, dubbed SARS-Cov-2. [ The logo of Samsung Electronics is seen at its office building in Seoul, South Korea (Courtesy: Reuters) ] There will only be nine such zones for the Galaxy S20, compared with the 130 it had for Galaxy Note 10 series in South Korea, according to Samsung's website. Samsung customers who want to try out the Galaxy S20 can have one delivered to their door and can use it for up to 24 hours. A delivery worker will reportedly pick it up after that. "We are introducing a new service, as coronavirus-related issues could result in less in-store experience," one of the people said, adding that the service is expected to be available only in some parts of South Korea.

Samsung offers phone delivery service for test use to ride out COVID-19 impact

Though the tech giant Amazon, after much pressure, admitted that conversations recorded by virtual assistant Alexa and transcribed by humans were to check for accuracy and the information is made anonymous beforehand, Robert Frederick revealed that he always turns off his Alexa smart speaker during personal and particularly sensitive conversations.

Though the tech giant Amazon, after much pressure, admitted that conversations recorded by virtual assistant Alexa and transcribed by humans were to check for accuracy and the information is made anonymous beforehand, Robert Frederick revealed that he always turns off his Alexa smart speaker during personal and particularly sensitive conversations. Robert Frederick, a former manager at Amazon Web Services stated in an interview with BBC Panorama that 'whoever owns, collects the data, if you have access to it, and rights to data, then you are king. It's all about the data. Everything,' Amazon has responded to the backlash from this laundering with an opt-out of annotation, affording customers the ability to delete recordings they do not want on the system. Amazon Senior VP for Devices and Services Dave Limp issued a statement guaranteeing that recordings that are kept allow the system to recognise the user's voice easily over time. Ring doorbells from Amazon have also been criticized for the way they utilise data, particularly in supplying video evidence to law enforcement. [ Amazon's Alexa smart speaker (L); Amazon Ring's doorbell cameras (R) (Courtesy: AFP) ] Having spent $840 million to buy the manufacturer, Amazon defended the product by saying that the doorbells "make it convenient to speak to and see whoever is at your front door." Police forces in the US and the UK have been beneficiaries of generous donations of the Amazon Ring doorbells, including Suffolk Constabulary who were given 1,000 units. Ring cameras in the US are being used by Amazon to create digital neighbourhood watch schemes with the help of an app called "Neighbours" where residents can share footage from the cameras. Access to the app's data has also been granted to more than 900 police forces, with permission from residents to have access to camera locations and footage. Dave Limp stated that this was not a marketing ploy to exhibit the product as a surveillance device, but an effort to make the lives of Amazon's customers safer. Also Read: Amazon's slow climate action: Defying company policy, over 300 employees speak out Concerns have been raised by the Government's Surveillance Camera Commissioner for England and Wales, Tony Porter. Responding to BBC Panorama, Porter warned that the introduction of Amazon's Neighbors app to the UK would "change from being community reassurance to a state form of surveillance." "This lays a foundation for a network that quite rightly and properly causes concerns for people that don't want to live in a society that is enmeshed in surveillance," he added. "We could end up in a surveillance state and I don't know anybody that wants to live in a surveillance state," said Porter.

Former Amazon executive says he turns off Alexa when he needs privacy

Business&nbsp;activity&nbsp;in&nbsp;Hong&nbsp;Kong&nbsp;contracted at the fastest pace in&nbsp;21&nbsp;years&nbsp;in&nbsp;November, dragged down by anti-government protests and softening global demand, an IHS Markit survey showed on Wednesday.

Increasingly violent demonstrations have disrupted the Chinese-ruled city for nearly six months, battering its retail and tourism sector and plunging its economy into recession for the first time in a decade.

The seasonally adjusted headline&nbsp;Hong&nbsp;Kong&nbsp;Purchasing Manager's Index (PMI) fell to 38.5 in&nbsp;November, down from 39.3 in October and signaling the steepest private sector downturn since the SARS epidemic in early 2003.

A survey reading above 50 indicates expansion, while a figure below 50 denotes contraction on a monthly basis.

"Escalating political unrest saw&nbsp;business&nbsp;activity&nbsp;shrinking at the steepest rate since the survey started in July 1998," said Bernard Aw, principal economist at IHS Markit.

"The average PMI reading for October and&nbsp;November&nbsp;combined showed the economy on track to see GDP fall by over 5 per cent&nbsp;in the fourth quarter unless December brings a dramatic recovery."

Demand from mainland China shrank for a nineteenth straight month in&nbsp;November, although the pace of contraction eased from October.

Companies also continued to scale back their purchases of raw materials and other inputs, with 38 per cent&nbsp;of survey respondents predicting weaker&nbsp;activity&nbsp;in the year ahead, citing political unrest and the protracted US-China trade war.

Hong&nbsp;Kong's retail sales fell the&nbsp;most&nbsp;on record in October, sinking 24.3 per cent&nbsp;from a year earlier, government data showed on Monday. Tourist arrivals plunged nearly 44 per cent.

Protesters are angry by what they see as Beijing's tightening grip over the city's cherished freedoms promised under a "one country, two systems" formula when Britain returned it to Chinese rule in 1997.

China denies interfering and says it is committed to the “one country, two systems” formula put in place at that time and has blamed foreign forces for fomenting unrest.

The crisis has heightened tensions between Washington and Beijing, complicating the two sides' efforts to negotiate a trade deal.

Economists at ING said&nbsp;Hong&nbsp;Kong&nbsp;is sliding into a hard-landing recession.

"No one is expecting a sudden end to the violent situation. We're forecasting GDP growth at&nbsp;7 per cent for the fourth quarter, and full-year growth will be 2.25 per cent&nbsp;in 2019, which is close in scale to 2009's recession of 2.5 per cent," they said in a note on Monday.

The economy could shrink 5.8 per cent&nbsp;in 2020, assuming trade war uncertainty and violent protests drag on through the year, ING said.

Business activity in Hong Kong contracted at the fastest pace in 21 years in November, dragged down by anti-government protests and softening global demand, an IHS Markit survey showed on Wednesday.

Business activity in Hong Kong contracted at the fastest pace in 21 years in November, dragged down by anti-government protests and softening global demand, an IHS Markit survey showed on Wednesday. Increasingly violent demonstrations have disrupted the Chinese-ruled city for nearly six months, battering its retail and tourism sector and plunging its economy into recession for the first time in a decade. The seasonally adjusted headline Hong Kong Purchasing Manager's Index (PMI) fell to 38.5 in November, down from 39.3 in October and signaling the steepest private sector downturn since the SARS epidemic in early 2003. A survey reading above 50 indicates expansion, while a figure below 50 denotes contraction on a monthly basis. "Escalating political unrest saw business activity shrinking at the steepest rate since the survey started in July 1998," said Bernard Aw, principal economist at IHS Markit. "The average PMI reading for October and November combined showed the economy on track to see GDP fall by over 5 per cent in the fourth quarter unless December brings a dramatic recovery." Demand from mainland China shrank for a nineteenth straight month in November, although the pace of contraction eased from October. Companies also continued to scale back their purchases of raw materials and other inputs, with 38 per cent of survey respondents predicting weaker activity in the year ahead, citing political unrest and the protracted US-China trade war. Hong Kong's retail sales fell the most on record in October, sinking 24.3 per cent from a year earlier, government data showed on Monday. Tourist arrivals plunged nearly 44 per cent. Protesters are angry by what they see as Beijing's tightening grip over the city's cherished freedoms promised under a "one country, two systems" formula when Britain returned it to Chinese rule in 1997. China denies interfering and says it is committed to the “one country, two systems” formula put in place at that time and has blamed foreign forces for fomenting unrest. The crisis has heightened tensions between Washington and Beijing, complicating the two sides' efforts to negotiate a trade deal. Economists at ING said Hong Kong is sliding into a hard-landing recession. "No one is expecting a sudden end to the violent situation. We're forecasting GDP growth at 7 per cent for the fourth quarter, and full-year growth will be 2.25 per cent in 2019, which is close in scale to 2009's recession of 2.5 per cent," they said in a note on Monday. The economy could shrink 5.8 per cent in 2020, assuming trade war uncertainty and violent protests drag on through the year, ING said.

Business activity in Hong Kong shrinks the most in 21 years: Sources

As many as 73,000 companies that have been deregistered deposited Rs 24,000 crore in bank accounts post demonetisation, according to government data.

As part of cracking down on black money flows and illicit assets, the Corporate Affairs Ministry has struck off the names of around 2.26 lakh companies that have not been carrying out business activities for long.

Many of these companies are suspected to have been used for illegal fund flows.

Data compiled by the ministry showed that out of the 2.26 lakh deregistered companies, the bank details of 1.68 lakh of them showed that post demonetisation cash was deposited in these accounts.

"Out of this, 73,000 companies deposited Rs 24,000 crore. Details of companies from various banks are under process," the ministry said in a document.

The document, which listed the ministry's achievements in the last four years, also said that 68 companies are under investigation.

The Serious Fraud Investigation Office (SFIO) is probing 19 companies while the Registrars of Companies (RoC) are investigating 49 firms, it added.&nbsp;

In November 2016, the government had cancelled old Rs 500 and Rs 1,000 currency notes as legal tenders as part of the fight against the black money menace.

Under the Companies Act, the government has powers to strike off names of firms from the register on various grounds.&nbsp;

The Corporate Affairs Ministry has struck off the names of around 2.26 lakh companies that have not been carrying out business activities for long.

As many as 73,000 companies that have been deregistered deposited Rs 24,000 crore in bank accounts post demonetisation, according to government data. As part of cracking down on black money flows and illicit assets, the Corporate Affairs Ministry has struck off the names of around 2.26 lakh companies that have not been carrying out business activities for long. Many of these companies are suspected to have been used for illegal fund flows. Data compiled by the ministry showed that out of the 2.26 lakh deregistered companies, the bank details of 1.68 lakh of them showed that post demonetisation cash was deposited in these accounts. "Out of this, 73,000 companies deposited Rs 24,000 crore. Details of companies from various banks are under process," the ministry said in a document. The document, which listed the ministry's achievements in the last four years, also said that 68 companies are under investigation. The Serious Fraud Investigation Office (SFIO) is probing 19 companies while the Registrars of Companies (RoC) are investigating 49 firms, it added. In November 2016, the government had cancelled old Rs 500 and Rs 1,000 currency notes as legal tenders as part of the fight against the black money menace. Under the Companies Act, the government has powers to strike off names of firms from the register on various grounds.

73,000 deregistered companies deposited Rs 24,000 crore post demonetisation: Govt data

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