Income Tax Department conducts search on premises of Chinese entities



Quick Summary
The Income Tax Department has conducted searches on several Chinese entities and their Indian associates suspected of money laundering and hawala transactions. Investigations revealed the creation of over 40 bank accounts in dummy entities, with credits exceeding Rs 1,000 Crore. Evidence suggests bogus advances were used to set up retail showrooms, with foreign hawala transactions also being unearthed.

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 search action was mounted at various premises of these Chinese entities, their close confederates and couple of bank employees.

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 1,000 Crore over the period. A 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. 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.

FAQ :

The Income Tax Department conducted searches based on credible information that Chinese individuals and their Indian associates were involved in money laundering and hawala transactions through shell entities.

The search revealed that over 40 bank accounts were created in various dummy entities, receiving credits of more than Rs 1,000 Crore. Bogus advances of over Rs 100 Crore were also taken by a Chinese company's subsidiary for opening retail showrooms.

Yes, incriminating documents suggest the active involvement of bank employees and Chartered Accountants in hawala transactions and money laundering.

Yes, evidence of foreign hawala transactions involving Hong Kong and US dollars has been unearthed.

Further investigations are currently underway.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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