The Income Tax department on Tuesday busted a big nexus of Chinese companies using the Hawala network in India.
Interestingly, these rackets have allegedly got a Manipur connection as fake passports have been issued from Manipur.
As many as 21 locations in Delhi, Ghaziabad and Gurugram among others have raided.
Sources said the Income Tax department based on the credible information that few Chinese individuals and their Indian associates were involved in money laundering and hawala transactions through a series of shell entities, a search action was mounted at various premises of these Chinese entities, their close confederates and a couple of bank employees.
“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 Rs 1,000 crore over the period. A subsidiary of Chinese company and its related concerns have taken over Rs 100 Crore bogus advances from shell entities for opening businesses of retail showrooms in India,” sources said.
Further, incriminating documents in respect of hawala transactions and laundering of money with active involvement of bank employees and chartered accountants has been found as a result of search action.
Evidence of foreign hawala transactions involving Hong Kong and US dollars have also been unearthed.
Further investigations are under progress, sources said.