Income Tax Department had received information that few Chinese individuals and their Indian associates were involved in money laundering and hawala transactions through series of shell entities
The Income Tax Department has busted a Hawala racket perpetrated by a few Chinese individuals and their Indian associates, and has unearthed more than 40 bank accounts created by dummy entities which received advances of more than Rs 1,000 crores from shell companies.
According to the Income Tax Department, they received credible information that few Chinese individuals and their Indian associates were involved in money laundering and hawala transactions through series of shell entities. Following the tip-off, a search action was mounted at various premises of these Chinese entities, their close confederates and couple of bank employees.
The search 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 crores 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.
The search also found incriminating documents in respect of hawala transactions and laundering of money with active involvement of bank employees and chartered accountants. Evidences of foreign hawala transactions involving Hong Kong and US dollars have also been unearthed. Further investigations are under progress.