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Income Tax department cracks down on Chinese entities suspected of money laundering, bogus transactions

The earnings tax department Tuesday performed searches on premises of Chinese entities, some Chinese people and their Indian associates concerned in money laundering and hawala transactions value over Rs 1000 crore.

The transactions have been being performed by shell entities with lively involvement of financial institution staff and chartered accountants, proof uncovered throughout the searches has revealed.

“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 1000 crores over the period,” the Board mentioned in a press release Tuesday.

The searches additionally discovered {that a} subsidiary of a Chinese firm and its associated considerations have taken over Rs 100 crores bogus advances from shell entities for opening companies of retail showrooms in India.

“Evidences of overseas hawala transactions involving Hong Kong and US {dollars} have additionally been unearthed,” the Board added. Further investigations are underneath progress.

The Chinese people and their Indian associates have been concerned in money laundering and hawala transactions by sequence of shell entities, which result in a search motion at varied premises of these Chinese entities, their shut confederates and couple of financial institution staff, the Board added.

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