More than 50 chartered accountants (CAs) and company secretaries (CSs) in Mumbai are on the radar of investigative agencies for their alleged involvement in helping Chinese nationals set up fake companies in the metropolis.
More than 500 shell companies have been registered in Mumbai and Maharashtra in which more than 100 directors are of Chinese origin, sources said.
Many CAs and CSs have been involved in registering and helping Chinese citizens set up fake companies in sectors like telecom, fincop and manufacturing, they added.
Investigative agencies believe that in the last two years around Rs 1,000 crore transactions have taken place through these companies. These transactions are being verified by the income tax department, according to sources.
Enforcement Directorate (ED), the Income Tax (IT) department and the Directorate of Revenue Intelligence (DRI) have been probing Chinese tech companies in India for alleged financial irregularities and evasion of taxes.
Earlier this year, the I-T department initiated a probe into Huawei’s books. Shortly after, Xiaomi, came up up on ED’s radar.
OPPO, Vivo and Xiaomi are facing various charges. A case was registered against Vivo under the Prevention of Money Laundering Act (PMLA). While Xiaomi was allegedly found having violated the Foreign Exchange Management Act (FEMA).
The Directorate of Revenue Intelligence (DRI) said that during its investigation pertaining to Oppo Mobiles India Private Ltd, a subsidiary company of Guangdong Oppo Mobile Telecommunications Corporation Ltd, China, “we have detected customs duty evasion of around Rs 4,389 crore”.
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