Action on 33 shell companies related to China: SFIO arrested the mastermind
Action on 33 shell companies related to China: SFIO arrested the mastermind, and Indian employees were in contact through a Chinese app
The Ministry of Corporate Affairs has ordered the Serious Fraud Investigation Office (SFIO) to investigate into fraud cases against 33 shell companies linked to China. In this investigation, SFIO has also arrested a person after raiding three shell companies last week. The ministry gave this information on Sunday.
The ministry said in a statement that on September 8, three companies located in Gurugram, Bengaluru and Hyderabad were simultaneously raided, in which one person has also been arrested. The ministry alleged that the arrested person is the mastermind of a racket involving a large number of shell companies with Chinese links in India and providing fake directors on their boards.
The ministry said that the arrested person had identified himself as a resident of Mandi in Himachal Pradesh as per the records recorded with the Registrar of Companies (ROC). The ministry in its statement alleged that the evidence found in the inquiry and raids conducted by ROC Delhi directly revealed that Gurugram-based Jillian Consultants India Private Limited Company had paid money to dummy directors.
This Gurugram-based company is a subsidiary of Hong Kong-based NTT Jillian Company. Raids were also conducted on Finnity Private Limited of Bangalore and Husis Consulting Limited of Hyderabad.
The ministry alleged that boxes containing company seals and digital signatures of dummy directors were recovered from the site. Indian employees were in touch with Chinese counterparts through a Chinese instant messaging app. The investigation so far has revealed the involvement of these shell companies in serious financial crimes that are detrimental to the financial security of the country.
On September 9, the Ministry of Corporate Affairs entrusted the SFIO with the task of investigating the Gurugram-based company and 32 other companies. The ministry said one person was arrested on Saturday and was produced in a judicial court. His transit remand orders have been obtained.
