SOURCE: INDIA TODAY
China has demanded “a fair, just and non-discriminatory environment for the normal operation of Chinese companies in India” after the Income Tax (I-T) Department busted a big nexus of Chinese companies in New Delhi on Tuesday.
Following inputs from the intelligence agencies, the I-T Department had carried out searches at 21 locations in Delhi, Ghaziabad and Gurugram, and later apprehended the main accused. So far, the agencies have uncovered a hawala operation involving Rs 1,000 crore.
According to the Central Board of Direct Taxes (CBDT), the subsidiary of a 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.
Evidence of foreign hawala transactions involving Hong Kong and US dollars has also been unearthed, the CBDT said. The Enforcement Directorate (ED) will initiate its probe in the case.
India Today contacted the deputy director of the Chinese Ministry of Foreign Affairs Information Department, Zhao Lijian, and queried about China’s stand on the matter. To which, Zhao Lijian said on Wednesday, “I don’t know [whether the companies are involved in money laundering]. What I can tell you is that the Chinese government has always required Chinese companies to conduct foreign cooperation on the basis of abiding by international rules and local laws and regulations, and at the same time, is committed to safeguarding the legitimate rights and interests of Chinese companies and citizens. It is hoped that the Indian side will provide a fair, just and non-discriminatory environment for the normal operation of Chinese companies in India.”
WHAT CBDT FOUND
The CBDT said in a statement, “Search action has revealed that at the behest of the Chinese individuals, more than 40 bank accounts were created in various dummy entities, entering into credits of more than Rs 1,000 crore over time. 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.”
“Further, incriminating documents in respect of hawala transactions and laundering of money with the active involvement of bank employees and chartered accountants have been found as a result of search action. Pieces of evidence of foreign hawala transactions involving Hong Kong and US dollars have also been found,” the CBDT added.
THE RACKET BOSS
The prime suspect in the hawala racket, Lou Sang, was nabbed from one of the 21 locations searched by the I-T Department. He had assumed the name of ‘Charlie Pang’ and got married to a Manipuri woman.
Lou Sang assumed an Indian identity to run the hawala racket over the last three years and held an Indian passport and Aadhaar under the name of ‘Charlie Pang’. He has been infusing cash of around Rs 3 crore through the hawala chain on a daily basis, with the help of bank employees in Bandhan Bank and ICICI Bank. He holds over 40 bank accounts. The I-T Department has raided several bank employees as well.
The accused kept on changing his addresses at regular intervals and managed to evade arrest. Sources said Lou Sang was earlier arrested by Delhi Police in 2018 for a hawala racket, but was eventually let off by the court. Later, he resumed his hawala operations. The Chinese man is alleged to be the kingpin of the racket apart from few other nationals of that country.