IT Officials Bust China-Linked Hawala Network With Bogus Transactions Of Over Rs 1,000 CroreRepresentative Image. (SAM PANTHAKY/AFP/GettyImages)

In a major development, the Income Tax (IT) department on Tuesday (11 August) unearthed a massive money laundering and hawala network operated by several Chinese individuals and companies operating in India, reports Business Standard.

The officials launched extensive raids across 21 premises spread in Delhi, Ghaziabad in Uttar Pradesh (UP) and Gurugram in Haryana, discovering over 40 bank accounts created in the name of dummy entities and shell companies with transactions of over Rs 1,000 crore.

Tax officials have scored big, having gotten their hands on incriminating documents with respect to the involvement of bank employees and chartered accountants in this Chinese hawala nexus.

The officials also nabbed a Chinese national with a fake Indian passport issued in the State of Manipur. The one nabbed alone operated at least 10 bank accounts across the nation under fictitious names. Many more names are likely to emerge in the coming days.

The raids have also revealed that a subsidiary of a Chinese company and its related company took over Rs 100 crore in bogus advances from these shell companies for opening business of retail showrooms in India.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber