IT dept raids Chinese entities over ‘hawala transactions’, 40 fake bank accounts found

New Delhi: The Income Tax Department on Tuesday conducted searches at premises of few Chinese individuals and their associates in connection with money laundering and hawala transactions. The searches resulted in unraveling of an organized network, which set up fake/bogus bank accounts and got money transferred to the tune of Rs 1,000 crore, in collusion with some bank employees.

These Chinese individuals apparently formed shell companies to transfer money to bogus bank accounts. A subsidiary of Chinese company has also been caught taking money from these shell companies and investing in retail showrooms in the country.

“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 crores over the period. A subsidiary of Chinese company and its related concerns have taken Rs 100 crores bogus advances from shell entities for opening businesses of retail showrooms in the country,” the IT dept said in a press release.

Surabhi Ahluwalia, the official spokesperson of CBDT, also informed that incriminating documents suggesting hawala transactions and money laundering have been found which also show involvement of some bank staff and Chartered Accountants.

In the reported hawala transactions, US and Hong Kong dollars have exchanged hands.