BSH NEWS
The government has unearthed several cases of illegal activities by Chinese business entities, either directly or through proxies, across sectors including telecom, higher education and small finance ever since a crackdown was launched against Chinese firms for their alleged evasion of taxes.
Several Chinese companies in India were found to be involved in tax evasions, according to an investigation launched by security and probe agencies, ET has learnt.
Bengaluru-registered Jumpmonkey Promotions Private Limited, run by Bialadugu Krishnaiah and a Chinese national Hutu orchestrated the fraud of issuing fake invoices ( ₹18.16 crore) to different Chinese firm/companies having Chinese nationals as directors without actual supply of services to facilitate availment of fake Input Tax Credit by the Chinese firms, ET has reliably learnt. Sources said Jumpmonkey had issued fake invoices to companies involved in running illegal Chinese loan apps such as Truthigh Finance Pvt Ltd ( ₹0.36 crore), Ajaya Solution Pvt Ltd ( ₹0.18 crore), Bienance Information Technology Pvt Ltd (Rs 0.19 crore), Gorupee Infintech Services Pvt Ltd (₹0.14 crore), and Wecred Technologies Pvt Ltd (Rs 0.03 crore). It is likely that Jumpmonkey (created in 2019) helped these illegal loan app companies to launder money overseas, sources alleged.
ET has learnt that over 1,000 pre-activated sim cards were also exported to China and re-entered India via few Chinese nationals. Around 1,650 pre-activated Indian SIM cards were sent to China through Gurugram-based hotel, Star Spring, people in the know said. Four Chinese nationals were arrested as part of this network to smuggle sim cards. Prominent Chinese telecom firm ZTE allegedly had links with the owner of the hotel, a Chinese national, ET has learnt.
It may be recalled that tax raids were conducted against ZTE Corp in 2021 following which the income-tax department unearthed tax liability of hundreds of crores over the years, unaccounted money and failure to deduct tax at source for several financial years.The social media has also been misused for financial fraud by Chinese companies. China Radio International (CRI), in its Tamil broadcast, has been advocating a pro-China stance by depicting economic slowdown in India and economic growth in China, criticising Indian activities in border areas and the official Chinese line of not recognising the Union Territory of Ladakh.
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