The persons raided included bank employees and chartered accountants allegedly involved in money laundering and hawala transactions

Residential and official premises of some Chinese individuals, their Indian associates, including some bank employees were raided by the Income Tax Department on Tuesday across Delhi, Ghaziabad and Gurgaon following tips that they are engaged in money laundering and hawala transactions.

A Chinese national named Charles Pang was questioned under detention, while his premises were under huge raid by the income tax officers, reports Times of India quoting sources.Though there were other Chinese entities, the sources did not reveal the names of those.

As many as 40 bank accounts were created in the name of fake entities which were credited with more than Rs. 1,000 crores over a time. The statement said that a subsidiary of a Chinese company had taken nameless advances of more than Rs. 100 crores, from the entities to open retail showroom business in India.

The search operation unearthed proof of hawala transactions with countries like Hong Kong and the US. Involvement of chartered accountants and bank employees has also been discovered as a result of the operation.

Since the killing of 20 Indian soldiers by Chinese troops in the Galwan Valley in Eastern Ladakh on June 15, India has taken tough measures against China. It has put restrictions on import of goods from China, banned 59 Chinese apps, also imposed restrictions on 47 Chinese clone apps, while putting a lid on Chinese companies’ involvement in infrastructure projects.

Doors have also been shut on Chinese companies’ entry into the growing MSME sector. Recently actions have been taken against Chinese cultural and Confucius centres as they are seen as facilitators of Chinese Communist Party’s propaganda.

However, the Income Tax Department’s raids on Chinese nationals’ residential and official premises have though nothing to do with tension between India and China on the border, still they have a link with their involvement in illegal financial activities.