The Earnings Tax division on Tuesday raided sure Chinese language people and Indian professionals allegedly concerned in cash laundering and hawala transactions, officers mentioned.
The I-T division mentioned it discovered that greater than 40 financial institution accounts have been created in India, which have been linked to a number of shell corporations, through which transactions value Rs 1,000 crore have been accomplished over a time frame.
Officers conversant in the probe mentioned the principle suspect was recognized as a person recognized as Charlie Peng, a Chinese language nationwide residing on a pretend Indian passport in Manipur for the previous six years.
Round half a dozen extra of his associates, who have been serving to him in cash laundering and hawala transactions, have been additionally recognized.
Folks within the IT division and finance ministry, conversant in the raids, mentioned Peng was taking the assistance of some Indian chartered accountants and financial institution officers for alleged unlawful monetary transactions by means of shell corporations and was additionally utilizing the hawala route. A subsidiary of a Chinese language firm was recognized and its position is being investigated, the officers added.
Peng’s Chinese language identify was recognized as Luo Sang. The Enforcement Directorate (ED) is more likely to be roped in for cash laundering investigations and Central Bureau of Investigation (CBI) could also be requested to probe if a bigger nexus is suspected.
“Primarily based on credible data that few Chinese language people and their Indian associates have been concerned in cash laundering and hawala transactions by means of sequence of shell entities, a search motion was mounted at numerous premises of those Chinese language entities, their shut confederates and couple of financial institution staff,” a Central Board of Direct Taxes (CBDT) assertion mentioned.
“A subsidiary of Chinese language firm and its associated considerations have taken over ~100 crore bogus advances from shell entities for opening companies of retail showrooms in India,”the assertion mentioned.
“Incriminating paperwork in respect of hawala transactions and laundering of cash with lively involvement of financial institution staff and Chartered Accountants has been discovered because of search motion,” it added. The division refused to disclose the identify of different Chinese language people or corporations.