Raid Disclose:114 Companies Operate From One Room In Hyderabad

 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 crores 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 the director for more than 20 companies.

.Raids in Hyderabad have revealed not one or two but 114 companies operating out of a single room, complete with balance-sheets, directors and their salaries.

 The firms, most of them believed to be shell companies, were found operating from a room in an upmarket mall in the city's Jubilee Hills area.

A team of eight officials visited an address on the third floor of the Fortune Monarch mall this morning. They were stunned by what they found.

At least 50 of the 114 companies have no business operations and many of them show losses.

Sources say the companies were lending to each other and may have been created to circulate money.

The companies say, officials, hold assets like agricultural land and also file returns.

Their directors are also drawing salaries; there are directors who are "managing" 25-30 companies each. "They seem to be related to each other," said an official.

The law in India does not allow one person to be a director for more than 20 companies.

The raids took place on orders from Delhi to check locations from where more than 25 companies are operating. There are at least six more locations that are likely to be raided; these are rooms that each house as many as 48, 38, 33 and 28 companies

Sources say one firm, SRSR Advisory Service, is the accountant for all these companies and Hill County - formerly Maytas, set up by Satyam founder B Ramalinga Raju's son - is among them.

The officers will file for prosecution after examining the documents in detail, NDTV was tol