Massive Action on Chinese Firms! MCA busts the racket of shell companies

A source close to development told Zee Business, “This entity is supposedly being used as an entry operator for the fraudulent transactions of Chinese enterprises, companies and individuals.”

During the raid, it was found that a network of more than 500 shell companies is being operated by this single entity. Source: MCA/Twitter

It is a massive action against Chinese companies! Ministry of Corporate Affairs busted the racket of shell companies. MCA conducted searches in several locations in India in relation of Jilian group which is private limited company operated by Chinese nationals. Registrar of companies (ROCs) of Delhi and Haryana led these searches in Gurgaon.

During the raid, it was found that a network of more than 500 shell companies is being operated by this single entity.

A source close to the development told Zee Business,“This entity is supposedly being used as an entry operator for the fraudulent transactions of Chinese enterprises, companies and individuals”.

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Source further added that, “It was also found that the subject company was using poor and gullible unemployed youth as Dummy Directors in these shell companies, which were being used for nefarious activities”.

Another source close to the development told Zee Business department has recovered a large number of company seals and letterheads of companies.

Ministry of Home Affairs has prepared a list of Chinese companies with the help of the Ministry of company affairs. Around 600 companies are under the scanner of investigation agencies. All investigation agencies are investigating Chinese companies.

Recently, Enforcement Directorate also conducted searches on Fintech companies including Paytm.

Similar raids have also been reported to have been conducted by other ROCs as well.

Pranay Chaturvedi, Anil Yadav, Sanjay Gupta, Nitin, Alok are officials of MCA who searched and conducted raids in Delhi NCR.

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