The Enforcement Directorate (ED) has initiated a money-laundering probe into a “hawala” racket allegedly involving some Chinese companies and shell entities that was unearthed by the Income-Tax Department earlier this month.
About a week ago, the Department conducted searches on 21 premises of suspects in Delhi, Ghaziabad and Gurugram.
The agency zeroed in on a Chinese national who had been living under pseudonym Charlie Peng. He held an Indian passport purportedly issued from Manipur. His real identity was established as Luo Sang.
The Department alleged that he used about 10 bank accounts, which were opened using fraudulent means.
In a statement, the agency said the operation was conducted on an information that some Chinese individuals and their Indian associates were involved in money laundering and “hawala” transactions through a several shell entities. Bank employees and chartered accountants also came under the scanner.
According to the Income-Tax Department, the searches revealed that at the behest of Chinese individuals, more than 40 bank accounts were created in various dummy entities and they dealt with credits of more than ₹1,000 crore over a period of time.
“A subsidiary of a Chinese company and its related concerns have taken over Rs.100 crore bogus advances from the shell entities for opening businesses of retail showrooms in India,” said the agency, adding that it had also gathered evidence of foreign “hawala” transactions involving Hong Kong and U.S. currencies.
