Published On: Mon, Aug 17th, 2020

ED registers money laundering case against Chinese Charlie Peng in hawala scam

New Delhi: The Enforcement Directorate (ED) on Monday said it has registered a case of money laundering against Luo Sang alias Charlie Peng and others in Rs 1000 crore Hawala Case.

The agency has registered a case of money laundering under the provisions of Prevention of Money Laundering Act

A top ED official said that the agency has registered a case of money laundering under the provisions of Prevention of Money Laundering Act, 2002 (PMLA) in Chinese hawala scam.

The financial probe agency action comes days after the Income Tax department on August 11 mounted a search at various premises of identified Chinese entities, their close confederates and couple of bank employees.

The IT department action was followed after credible information with the tax department that a few Chinese individuals and their Indian associates were involved in money laundering and ‘hawala’ transactions, via a series of shell entities.

The search operation revealed that at the behest of Chinese individuals, more than 40 bank accounts were created in various dummy entities entering into credits of more than Rs 1,000 crore over the period.

IT released a press note saying that Charlie Peng and some other Chinese National with the help of Bank Officials and CA opened 40 bank accounts and were operating Shell Companies.

They withdrew Rs 100 cr from the bogus companies and established Retail Chain Showroom in India.

A Central Board of Direct Taxes (CBDT) statement also said that a subsidiary of a Chinese company and its related concerns have taken over Rs 100 crore bogus advances from shell entities for opening retail showrooms in India.

Incriminating documents linked to hawala transactions and laundering of money with active involvement of bank employees and chartered accountants has been found during the search.

Evidence of foreign hawala transactions involving Hong Kong and US dollars have also been unearthed. The tax department is continuing further investigation.

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