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.
You have reached your limit for free articles this month.
To get full access, please subscribe.
Already have an account ? Sign in
Show Less Plan
Subscription Benefits Include
Today's Paper
Find mobile-friendly version of articles from the day's newspaper in one easy-to-read list.
Faster pages
Move smoothly between articles as our pages load instantly.
Unlimited Access
Enjoy reading as many articles as you wish without any limitations.
Dashboard
A one-stop-shop for seeing the latest updates, and managing your preferences.
Personalised recommendations
A select list of articles that match your interests and tastes.
Briefing
We brief you on the latest and most important developments, three times a day.
*Our Digital Subscription plans do not currently include the e-paper ,crossword, iPhone, iPad mobile applications and print. Our plans enhance your reading experience.
A letter from the Editor
Dear subscriber,
Thank you!
Your support for our journalism is invaluable. It’s a support for truth and fairness in journalism. It has helped us keep apace with events and happenings.
The Hindu has always stood for journalism that is in the public interest. At this difficult time, it becomes even more important that we have access to information that has a bearing on our health and well-being, our lives, and livelihoods. As a subscriber, you are not only a beneficiary of our work but also its enabler.
We also reiterate here the promise that our team of reporters, copy editors, fact-checkers, designers, and photographers will deliver quality journalism that stays away from vested interest and political propaganda.
Suresh Nambath
