Income Tax raid finds money laundering worth ₹1,000 crore by Chinese firms

  • The income tax department found that over 40 bank accounts were created through dummy entities
  • The tax department found the links to money laundering involving bank employees and chartered accountants

Written By Anulekha Ray
Updated11 Aug 2020, 10:21 PM IST
Income Tax Department has conducted raids against some Chinese individuals for indulging in a money laundering racket involving  <span class='webrupee'>₹</span>1,000 crore
Income Tax Department has conducted raids against some Chinese individuals for indulging in a money laundering racket involving ₹1,000 crore

Income Tax Department conducted raids against few Chinese individuals and their Indian associates for running a money laundering racket worth 1,000 crore, the Central Board of Direct Taxes said on Tuesday. They were involved hawala transactions through a series of shell entities, Surabhi Ahluwalia, official spokesperson of CBDT said in a statement.

The income tax department found that over 40 bank accounts were created through dummy entities and had credit of more than 1,000 crore, the statement read. "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," it said in a statement

A subsidiary of Chinese company took over 1,000 crore "bogus advances from shell entities for opening business and retail showrooms in India", the income tax department stated. The I-T department also unearthed documents related to hawala transactions.

The tax department found the links to money laundering involving bank employees and chartered accountants. "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," thr statement read.

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

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First Published:11 Aug 2020, 10:21 PM IST
HomeNewsIndiaIncome Tax raid finds money laundering worth ₹1,000 crore by Chinese firms

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