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IT Dept disclose Money Laundering racket linked to Chinese firms.



The Income Tax department on Tuesday said searches at premises of certain Chinese entities in India have revealed a money laundering racket involving shell companies.

The search has led to detection of more than 40 bank accounts which were created in various dummy entities at the behest of certain Chinese individuals. Over a period, these accounts were used for transactions worth more than 1,000 crore. A subsidiary of a Chinese company and its related concerns have taken over 100 crore bogus advances from shell entities for opening retail showrooms in India, the tax department said in a statement.

The search was conducted after the department received tip off that these entities and their Indian associates were involved in money laundering and hawala transactions through shell entities, the department said. The role of a couple of bank employees has also been detected, the department said, without identifying the Chinese companies or the people involved.

The development comes after India banned dozens of Chinese mobile phone applications and barred Chinese firms from participating in government tenders in the aftermath of the border clash with the neighbour in June that left about 20 Indian soldiers dead.

“Incriminating documents in respect of hawala transactions and laundering of money with active involvement of bank employees and chartered accountants has been found as a result of the search action,” the tax department statement said. Evidence of hawala transactions involving Hongkong and US dollars have been unearthed and further investigations are on, it said.


Virtual bilateral summit between Mahinda Rajapaksa and PM Modi will hold on Saturday.



Prime Minister Narendra Modi and his Sri Lankan counterpart Mahinda Rajapaksa will hold a virtual bilateral summit on September 26, the Ministry of External Affairs said on Wednesday.

The ministry said the summit will give an opportunity to the two leaders to comprehensively review the broad framework of the bilateral relationship. The two leaders are expected to deliberate on a host of issues like ways to further deepen anti-terror cooperation, boost overall defence and trade ties as well as implementation of India’s development projects in Sri Lanka.

The long-pending Tamil issue in Sri Lanka is also likely to figure in the talks.India has been pitching for fulfilling the aspirations of the Tamil community in the island nation.

“The virtual bilateral summit will give an opportunity to the two leaders to comprehensively review the broad framework of the bilateral relationship soon after the Parliamentary elections in Sri Lanka and in the context of the time-tested friendly ties between the two countries,” the MEA said in a statement.

Last month, Rajapaksa was sworn in as Sri Lankan prime minister for a fresh term after his party, Sri Lanka People’s Front, secured a two-thirds majority in the parliamentary polls.

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