India’s tax department today raided Chinese entities and said that Chinese individuals and their Indian associates were “involved in money laundering and hawala transactions through series of shell entities.”
The Central Board of Direct taxes(CBDT) said that search action was mounted at various premises of the Chinese entities, their close confederates and bank employees.
CBDT said that after the search action it found that at the behest of Chinese individuals over 40 bank accounts were created in various dummy entities which entered into credits of more than Rs 1,000 crores.
The tax department asserted that the searches were launched based on credible inputs.
“Incriminating documents of hawala transactions and money laundering with active involvement of bank employees and Chartered Accountants have been found as a result of the search action,” it said.
The department added that evidence of foreign hawala transactions involving Hong Kong and US dollars were also unearthed.
