Govt yet to adopt AI for detecting shell companies: MCA

The government has not yet deployed an artificial intelligence (AI)-based system to detect suspicious or shell companies, and continues to rely on a rule-based analytical framework under its MCA-21 portal to identify potential corporate fraud and non-compliance, the ministry of corporate affairs (MCA) said in a written reply to Lok Sabha on Monday.

Replying to a question on whether the government has reviewed the campaigns against shell companies, fake directors and suspicious corporate transactions, the ministry said that “no AI based risk analysis system is in use currently.”