The Enforcement Directorate (ED) has registered a case against Luo Sang alias Charlie Peng and others under the provisions of Prevention of Money Laundering Act, 2002 (PMLA) in connection with the Chinese hawala scam.
Luo Sang, a Chinese national, was arrested on August 11 by the Income Tax department during a raid under charges of money laundering and representing fake Chinese compes in hawala transactions.
It was reported that Sang was arrested by the Special Cell of the Delhi Police in September 2018 under charges of espionage. He was reportedly accused of spying for China and running money laundering and hawala transaction businesses.
The Income Tax department had on August 11 carried out searches on the premises of Chinese entities, their confederates and some bank employees based on credible information regarding Chinese individuals and their associates being involved in money laundering and hawala.
According to officials, it was revealed during the searches that at the behest of the Chinese nationals, more than 40 bank accounts were created in dummy entities, through which credits of over Rs 1,000 crore were entered into over the period.
Moreover, it was also revealed that the subsidiary of a Chinese company and its related concerns took over Rs 100 crore bogus advances from shell entities for opening retail showrooms businesses in the country, officials had said.
Further, they said that incriminating documents revealing hawala transactions money laundering with the involvement of bank employees and charted accountants were found during the searches.
( With inputs from ANI )