Govt cracks down on Chinese companies over laundering, hawala


Tribune News Service

New Delhi, August 12

The authorities has cracked down on Chinese institutions with the Income Tax Department conducting a number of search operations.

According to sources within the I-T Department, a couple of Chinese people and their Indian associates had been prima facie concerned in cash laundering and hawala transactions by means of shell entities.

In the raids that had been carried out on varied premises of Chinese entities, their shut confederates and a few financial institution staff, IT Department sources claimed to have discovered that on the behest of Chinese people, greater than 40 financial institution accounts had been created in varied dummy entities and had been used within the transactions of over Rs 1,000 crore over the interval, mentioned a press release by the Ministry of Finance. No particulars had been supplied.

Bank staff concerned: Sources

  • I-T Department sources declare on the behest of Chinese people, greater than 40 financial institution accounts had been created in varied dummy entities and utilized in transactions of over Rs1,000 crore over the interval
  • Incriminating paperwork of hawala transactions and cash laundering with energetic involvement of financial institution staff and chartered accountants have been discovered on account of the search motion

The findings additionally included a subsidiary of a Chinese firm and its associated considerations which have allegedly taken over Rs 100 crore bogus advances from shell entities for opening companies of retail showrooms in India.

Besides, incriminating paperwork in respect of hawala transactions and cash laundering with the energetic involvement of financial institution staff and chartered accountants have additionally been discovered on account of search motion.

In the search operation, which remains to be within the course of, proof of international hawala transactions, involving Hong Kong and US {dollars}, has additionally been unearthed, claimed the ministry press launch, which mentioned the search operation was based mostly on “credible information”.

Meanwhile, a number of the largest importers of Chinese items have determined to show a brand new leaf. The Confederation of All India Traders (CAIT) has launched a marketing campaign “China Quit India” and mentioned there was an pressing must test China’s rising footsteps in India and import of Chinese items.

Meanwhile, there are confabulations within the Finance Ministry over an order issued on July 23 that amended the General Financial Rules, 2017, “to enable imposition of restrictions on bidders from countries which share a land border with India on grounds of defence and national security”.

The drawback is the principles apply to Hong Kong, which is managed by China. This has affected a number of European firms which might be headquartered in Hong Kong, however have operations in India, amongst a number of different nations within the area.



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