CBDT unearths Rs 1,000 crore hawala network of Chinese companies in Delhi, Ghaziabad and Gurugram

Income-Tax department conducted raids on premises of few Chinese individuals and their India associates for running a money laundering racket worth Rs1,000 crore, the Central Board of Direct Taxes said on Tuesday. It said the “subsidiary of Chinese company and its related concerns have taken over Rs 100 crore bogus advances from shell entities for opening businesses of retail showrooms in India”.

The sleuths of I-T department reportedly raided a total of 21 companies based in Delhi, Ghaziabad and Gurugram region. The shell entities were being used for executing money laundering activities.

“Based on the credible information that few Chinese individuals and their Indian associates were involved in money laundering and hawala transactions through series of shell entities, a income tax search action was mounted at various premises of these Chinese entities, their close confederates and couple of bank employees, CBDT said in a statement.

It further said that the search action revealed that at the behest of Chinese individuals, more than 40 bank accounts were created in various dummy entities, entering into credits of more than Rs. 1000 crores over the period. “A subsidiary of Chinese company and its related concerns have taken over Rs. 100 crores 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 active involvement of bank employees and Chartered accountants has been found as a result of search action. Evidences of foreign hawala transactions involving Hongkong and US dollars have also been unearthed. Further investigations are under progress, The CBDT said.

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