I-T division raids Chinese people, native contacts in Rs 1,000-crore cash laundering case

NEW DELHI: The earnings tax (I-T) division has carried out raids towards some Chinese people and their native associates for allegedly indulging in a cash laundering racket involving Rs 1,000 crore utilizing shell or doubtful corporations, the Central Board of Direct Taxes (CBDT) stated on Tuesday.
It stated the “subsidiary of Chinese firm and its associated issues have taken over Rs 100 crore bogus advances from shell entities for opening companies of retail showrooms in India”.
The CBDT, that frames coverage for the tax division, stated the searches had been launched based mostly on credible inputs that a number of Chinese people and their Indian associates had been concerned in cash laundering and hawala transactions by way of a collection of shell entities.
Some financial institution officers had been additionally raided, it stated.
“Search motion revealed that on the behest of Chinese people, greater than 40 financial institution accounts had been created in varied dummy entities, getting into into credit of greater than Rs 1,000 crore over the interval,” it stated in a press release with out figuring out the entities concerned.
“Incriminating paperwork of hawala transactions and cash laundering with energetic involvement of financial institution workers and Chartered Accountants have been discovered on account of the search motion,” it stated.
Evidences of international hawala transactions involving Hong Kong and US {dollars} have additionally been unearthed, the CBDT stated.

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