One of the arrested got here below the Income-Tax Department’s scanner in August final yr for operating a ‘hawala’ racket utilizing shell firms.
The Enforcement Directorate (ED) has arrested two Chinese nationals on money laundering charge. They are presently within the company’s custody.
The accused have been recognized as Luo Sang and Carter Lee. Sang had come below the Income-Tax Department’s scanner in August final yr for operating a ‘hawala’ racket utilizing shell firms.
Based on the findings, the ED additionally launched investigation below the Prevention of Money Laundering Act.
The I-T Department had detected the racket allegedly involving Chinese firms that used shell entities for ‘hawala’ operations in India. Searches have been then carried out on the premises of suspects in Delhi, Gurugram and Ghaziabad.
The division zeroed in on Sang, who had been residing below a pseudonym, Charlie Peng. The accused held a fraudulently obtained Indian passport purportedly issued from Manipur.
According to the company, Sang used about 10 financial institution accounts opened in fictitious names to route funds. He represented a number of Chinese firms in India for ‘hawala’ operations.
“Based on the credible info that some Chinese people and their Indian associates have been concerned in money laundering and ‘hawala’ transactions via collection of shell entities, a search motion was mounted on numerous premises of those Chinese entities, their shut confederates and couple of financial institution workers,” the Department had stated.
Initial probe revealed that on the occasion of Chinese people, over 40 financial institution accounts have been arrange for numerous dummy entities, getting into into credit of greater than ₹1,000 crore over a time frame.
“A subsidiary of Chinese firm and its associated issues have taken over ₹100 crore bogus advances from shell entities for opening companies of retail showrooms in India,” the division had stated, including that the function of some financial institution officers and chartered accountants was additionally being investigated.