Income Tax officials raided various premises of the Chinese entities, their close confederates and a couple of bank employees in connection with money laundering and hawala transactions through a series of shell entities, according to a report from the IT Department on Tuesday.
The raid was conducted on the basis of credible information that few Chinese individuals and their Indian associates were involved in hawala transactions.
They found that more than 40 bank accounts were created in various dummy entities, entering into credits of more than Rs 1,000 crore over a period. 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.
They also seized incriminating documents in respect of hawala transactions and laundering of money with the active involvement of bank employees and chartered accountants. Evidence of foreign hawala transactions involving Hong Kong and US dollars have also been unearthed. Further investigations are on, the report added.