Government tightens noose around Chinese shell companies

New Delhi [India]-  The Ministry of Corporate Matters (MCA) on Thursday initiated a suppression on Indian entities that were supplying “fake directors” to thousands of Chinese covering business in cities like Delhi, Bengaluru, Hyderabad and also Gurugram.

” The Ministry of Corporate Matters has started raiding today at 1530 hrs. Indian organisations who were giving fake directors to numerous Chinese covering business. Raids are taking place in Delhi, Gurugram, Bengaluru as well as Hyderabad. A team of 25 to 30 MCA policemans goes to each area. Raids are continuing,” according to main sources.  They included that Indian residents without education and learning and also working in menial tasks were being given as Directors to Chinese Shell business.

Raids are currently proceeding and also even more information are awaited hereof.

Earlier this month, the Enforcement Directorate (ED) accomplished search operations at 6 properties in Bengaluru in respect to an investigation connecting to the Chinese financing app case.

The federal company had performed the raids under provisions of the Avoidance of Cash Laundering Act (PMLA), 2002, the firm claimed.

The facilities of Razorpay Pvt Ltd, Cashfree Settlements, Paytm Payment Solutions Ltd and also entities managed and run by Chinese Individuals were covered in the search procedure, stated the ED.

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