New Delhi: Based on credible information regarding Chinese individuals and their associates being involved in money laundering and hawala, the Income Tax Department on Tuesday carried out searches on the premises of Chinese entities, their confederates and some bank employees.
During the search action, it was revealed that at the behest of the Chinese nationals, more than 40 bank accounts were created in dummy entities, through which credits of over Rs 1,000 crore were entered into over the period, a statement by the Central Board of Direct Taxes (CBDT) said.
Moreover, it was also revealed that the subsidiary of a Chinese company and its related concerns took over Rs 100 crore bogus advances from shell entities for opening retail showrooms businesses in the country.
Further, incriminating documents revealing hawala transactions money laundering with the involvement of bank employees and chartered accountants were found during the search action. The evidence of hawala transactions being done using Hong Kong and US dollars were also unearthed.
Further investigation is underway.