More than 50 Chartered Accountants (CAs) and Company Secretaries (CS) in Mumbai are on the radar of investigative agencies for their alleged involvement in helping Chinese nationals set up fake businesses in the metropolis.
More than 500 shell companies have been registered in Mumbai and Maharashtra, in which more than 100 directors are of Chinese descent, sources said.
Many CAs and CSs have been involved in registering and helping Chinese citizens set up fake businesses in sectors including telecommunications, finance and manufacturing, they added.
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Investigative agencies estimate that over the past two years, transactions of around Rs 1,000 crore have taken place through these companies. These transactions are being audited by the income tax department, sources said.
The Directorate of Law Enforcement (ED), the Department of Income Tax (IT) and the Directorate of Tax Intelligence (DRI) probed Chinese technology companies in India for alleged financial irregularities and l ‘tax evasion.
Earlier this year, the IT department launched an investigation into Huawei’s books. Soon after, Xiaomi appeared on ED’s radar.
OPPO, Vivo and Xiaomi are facing various charges. A case has been filed against Vivo under the Prevention of Money Laundering Act (PMLA). While Xiaomi was allegedly found guilty of violating the Foreign Exchange Management Act (FEMA).
The Directorate of Tax Intelligence (DRI) said that during its investigation of Oppo Mobiles India Private Ltd, a subsidiary of Guangdong Oppo Mobile Telecommunications Corporation Ltd, China, “we detected customs fraud of approximately Rs 4,389 crore “.