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India raids firms of Chinese nationals, uncovers ₹10 billion money laundering racket

Indian authorities have raided Chinese individuals and their local associates for running a money laundering racket worth INR₹10 billion rupees by using dubious firms.

The Income Tax Department raided two dozen premises in various locations across the nation.

“Search action revealed that at the behest of Chinese individuals, more than 40 bank accounts were created in various dummy entities, entering into credits of more than ₹ 1,000 crore over the period,” the Central Board of Direct Taxes said in a statement without identifying the entities involved.




“Incriminating documents of hawala transactions and money laundering with active involvement of bank employees and Chartered Accountants have been found as a result of the search action,” it said.

Evidences of foreign hawala transactions involving Hong Kong and US dollars have also been unearthed, the CBDT added.

A Chinese man, who allegedly holds a fake Indian passport, is alleged to be the kingpin of the racket apart from few other nationals.



They said the Chinese man had got prepared the fake Indian passport from Manipur and has been detained by the department.

Apart from the Income Tax Department, the Enforcement Directorate may investigate the money laundering angle, while the police would charge the Chinese national for possessing a fake passport.