Chinese hawala operator with NE links held
NEWDELHI, 12th Aug: The Central Board of Direct Taxes (CBDT) officials busted a big hawala operation involving several Chinese companies in India. According to sources in the IT department, Chinese companies were using this network to move money. Multiple locations were raided in Delhi, Ghaziabad and Gurugram, and a Chinese national apprehended. The individual named Charlie Peng (Luo Sang) was carrying a fake Indian passport issued from Manipur.
The Chinese national was using 8 to 10 bank accounts in fictitious names in India and represented several Chinese Companies for Hawala operations. Hawala of more than Rs 300 crore is known till now and it could go into thousands of crores.
Official statement of Indian Income Tax Department says search action revealed that at the behest of few Chinese Individuals more than 40 bank accounts were created in various dummy entities, entering credits of more than Rs 1000 crore over the period. A subsidiary of Chinese company and its related concerns have taken over Rs 100 crore in bogus advances in shell entities for opening businesses of retail showrooms in India.
The investigation also found involvement of bank employees and chartered accountants in the operation. There were also foreign hawala transactions involving US and Hong Kong dollars.
Luo Sang was also earlier arrested by Special Cell of the Delhi Police in September 2018, under charges of espionage.
According to sources, the Delhi Police had alleged that 'Charlie Peng' was spying for China and also running money laundering and hawala transaction businesses. However, he was let go later by court.
On Tuesday, the Income Tax Department conducted searches in 21 locations in Delhi, Ghaziabad and Gurugram after getting "credible information" of the Chinese involvement in money laundering. Chinese national Luo Sang's name emerged during these raids. He was nabbed from one of the 21 locations searched by the IT.
He was infusing cash of around Rs 3 crore through hawala on daily basis with the help of bank employees in Bandhan Bank and ICICI bank. He holds over 40 bank accounts. Bank employees were also raided and it is suspected that the scam is worth over Rs 1000 crore and is being operated using a subsidiary of the Chinese company. It is suspected that Lou Sang was running this scam from the last 3 years. The accused kept on changing his addresses at a regular time. Earlier he was staying in Dwaraka and the current address was in Phase-5, DLF Gurugram.
The Income Tax Department has recovered two fake Aadhaar cards, a fake PAN card and a fake passport from Luo Sang's possession.
The first Aadhaar card has been issued in the name of a Charlie Peng. The address given on the Aadhaar card is Sector 19, Dwarka, Delhi. The second Aadhaar card is also in the name of Charlie Peng but the address given is of Manipur.
The 40-year-old Chinese national also has an Indian passport issued in Guwahati. A PAN card has also been recovered from his possession which carries the name of Charlie Peng.
According to the sleuths, Charlie Peng's real identity is Luo Sang. He is a Chinese national and hails from Lhasa, Tibet.
It has also come to light that Luo Sang had married an Indian earlier to make the process of acquiring an Indian passport, easier. His wife hailed from Lunglei in Mizoram. The investigating agency has recovered the wife's passport as well.