The Income Tax Department conducted searches against some Chinese individuals and their Indian associates for allegedly engaging in money laundering and hawala transactions involving Rs 1,000 crore using shell entities, the Central Board of Direct Taxes (CBDT) said in a statement on Tuesday.
“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,” the CBDT said in a statement, without naming the Chinese entities.
Some bank employees were also searched by the Income Tax Department, the statement said. “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,” it said.
The tax department stated that it has found evidence of foreign hawala transactions involving Hong Kong and US dollars, adding that further investigations are in progress.
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