The Income Tax Department busted a colossal nexus of Chinese companies and their Indian associates which uses the hawala network in India on Tuesday. The inputs were provided by intelligence agencies followed by the searches at around 21 locations in Delhi, Ghaziabad and Gurugram.
The IT department has also uncovered around 40 Bank accounts created by dummy entities which had received an advance of more than 1000crores from shell companies. In a statement given by the Central Board of Direct Taxes (CBDT) it is stated,
“Search action has revealed that at the behest of the Chinese individuals, more than 40 bank accounts were created in various dummy entities, entering into credits of more than Rs 1000crores over time. A subsidiary of Chinese company and its related concerns have taken over Rs 100crores bogus advances from shell entities for opening businesses of retail showrooms in India. Further, incriminating documents in respect of hawala transactions and laundering of money with the active involvement of bank employees and chartered accountants have been found as a result of search action. Pieces of evidence of foreign hawala transactions involving Hong Kong and US dollars have also been found.”
There is also a Chinese individual detained by the Income Tax Department who has been identified as Luo Sang. According to the Official sources he had assumed an identity with a name Charlie Pang and held a fake Indian Passport. On further investigation, it is revealed that he got his phoney passport from Manipur. Also, for his counterfeit operations for money laundering, he was using around ten bank accounts under fictitious names in India.
Also, Charlie Pang represented many Chinese companies in India. The search conducted by the IT department found certain illegal and incriminating documents in respect of hawala transactions and laundering of money with active involvement of certain Chartered accountants and Bank representatives. Evidence of foreign hawala transactions involving Hong Kong has also been revealed. Further investigation is under process.