I-T dept searches Chinese entities over hawala transactions of Rs 1,000 cr

The profits-tax (I-T) section on Tuesday unearthed a massive nexus of Chinese firms and folks that experienced allegedly established quite a few shell firms to have out income laundering and hawala transactions of above Rs 1,000 crore.

In their crackdown on these Chinese firms, the tax authorities introduced an intensive lookup procedure at 21 premises throughout Delhi, Ghaziabad and Gurugram. The effort and hard work was directed at these entities, their near confederates and also the bank workforce who allegedly aided them in laundering income.

“About forty bank accounts were established in the identify of dummy entities operate by these Chinese firms that transacted 1000’s of crores of rupees,” the profits-tax section said.

The investigation has so far unveiled that a subsidiary of a Chinese business and its connected business took above Rs a hundred crore in bogus developments from shell entities for opening business of retail showrooms in India.

For the duration of the searches, tax officers discovered incriminating documents with regard to hawala, with an active involvement of bank workforce and chartered accountants. Other than, proof of foreign hawala involving Hong Kong and US dollars was also been unearthed, the Central Board of Immediate Taxes (CBDT) claimed in a assertion.

Conveying the modus operandi, an formal privy to the probe claimed that a Chinese individual was discovered to be keeping a bogus Indian passport issued in Manipur. He was employing at the very least 10 bank accounts below fictitious names throughout the state. “More names would be unveiled in coming months,” the formal hinted.