The Enforcement Directorate has registered a case of money laundering against a Chinese national in connection to a hawala racket worth an estimated Rs 1,000 crore.
Charlie Peng, who also goes by the name of Luo Sang, has been booked under the Prevention of Money Laundering Act (PMLA). The racket, which was allegedly run by Peng, used shell companies.
The Income Tax Department on August 11 said it conducted search operations at various Chinese entities.
The ED has taken cognisance of the tax department evidence and action and a Delhi Police Special Cell FIR against Peng before filing the criminal case of money laundering against him.
Peng, according to sources cited by PTI, is alleged to be holding a fake Indian passport and tax officials had said he created a “web of sham companies to launder hawala funds to and from China” in the past two-three years.
They said his front or showcase business was import and export of medical and electronic goods and some other items.
Peng, the sources said, was arrested by the Special Cell of the Delhi Police in September, 2018 on charges of fraud and forgery and was allegedly running an illegal money changer.
Peng is currently being questioned by the tax department apart from central intelligence agencies.