China’s money laundering in India: Income Tax Dept finds Rs 1,000 crore hawala, bogus transactions

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August 12, 2020 11:46 AM

I-T search operations unveiled that a few Chinese individuals and their Indian associates were involved in money laundering and hawala transactions through shell entities.

fraud, money laundering, hawala transactions, china fraud, IT deptAt the behest of Chinese individuals, more than 40 bank accounts were created in various dummy entities and were used in the transactions of over Rs 1,000 crore.

In another crackdown on Chinese establishments in India, the Income Tax Department conducted a series of search operations that unveiled a few Chinese individuals and their Indian associates who were involved in money laundering and hawala transactions through shell entities. In the raids that were carried out at various premises of Chinese entities, their close confederates, and some bank employees, it was found out that at the behest of Chinese individuals, more than 40 bank accounts were created in various dummy entities and were used in the transactions of over Rs 1,000 crore over the period, said a statement by the Ministry of Finance. 

The findings also included a subsidiary of Chinese company and its related concerns that 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 money laundering with the active involvement of bank employees and chartered accountants have also been found as a result of search action. 

Also Read: Factory output in June continues to shrink in double-digit; manufacturing IIP takes maximum hit in Q1

In the search operation which is still in the process, evidence of foreign hawala transactions involving Hongkong and US dollars has also been unearthed. The government said that the search operation was based on credible information. Immediately after the fatalities at Galwan valley, India emerged with a nationwide rage to boycott Chinese products and services. While various trade associations announced to boycott the Chinese goods in this festive season, many state governments stepped up to put projects, that included Chinese firms, on hold. 

Meanwhile, on the anniversary of the Quit India Movement, the Confederation of all India Traders (CAIT) launched a campaign ‘China Quit India’ to boycott Chinese goods, while its members held protests at 600 places across the country. CAIT said there is an urgent need to check China’s growing footsteps in India and import of Chinese goods. However, the Federation of Indian Export Organisation (FIEO) had said that a blanket ban on Chinese goods was not in the best interest of India, instead, a calibrated and well-thought strategy is needed.

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