New Delhi: The Central Board of Direct Taxes (CBDT) reported that the Income Tax Department had raided some Chinese citizens and their Indian peers in connection with running a money-laundering racket worth Rs 1,000 crore. The Central Board of Direct Taxes reported on Tuesday that the Income Tax Department conducted raids against some Chinese individuals and their local partners for involvement in a money-laundering racket worth Rs 1,000 crore using shells or suspected firms.
It added that “the Chinese company subsidiary and its related companies had taken fake advances of more than Rs 100 crore from shell entities to open the business of retail showrooms in India.” The CBDT, which makes policies for the tax department, said that the investigation was initiated “on the basis of credible input. It was reported that some Chinese individuals and their Indian associates were involved in shelling out money laundering and hawala transactions Included via the series “. Some bank officials have also been raided in this connection.
There is also evidence of involvement of bank employees and chartered accountants
Without identifying the entities involved, a statement said, “The investigation action has revealed that at the behest of Chinese individuals, more than 40 bank accounts were created in various dummy entities, including Rs 1,000 crore over the entire period.
“Documents proving crimes related to hawala transactions and money laundering have been found during the search. Evidence of active involvement of bank employees and chartered accountants has been found,” he said.
CBDT said that evidence of foreign hawala transactions involving Hong Kong and US dollars has also been disclosed.
