New Delhi, Aug 11 (IANS) The Income Tax Department on Tuesday mounted a search at various premises of identified Chinese entities, their close confederates and couple of bank employees.
The action followed credible information with the tax department that a few Chinese individuals and their Indian associates were involved in money laundering and ‘hawala’ transactions, via a series of shell entities.
The search operation 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 Central Board of Direct Taxes (CBDT) statement also said that a subsidiary of a Chinese company and its related concerns have taken over Rs 100 crore bogus advances from shell entities for opening retail showrooms in India.
Incriminating documents linked to hawala transactions and laundering of money with active involvement of bank employees and chartered accountants has been found during the search.
Evidence of foreign hawala transactions involving Hong Kong and US dollars have also been unearthed. The tax department is continuing further investigation.