Illegal activities of Chinese companies in India under lens

Since the launch of crackdowns against Chinese firms for alleged evasion of taxes, the government has uncovered several cases of illegal activities by Chinese business entities, either directly or through proxy, in sectors including telecommunications, higher education and microfinance.

According to investigations launched by security and investigative agencies, several Chinese companies in India were found to be involved in tax evasion, ET has learned.

Bengaluru-registered Jumpmonkey Promotion Pvt Ltd, which is operated by Biyaladugu Krishnaiah and a Chinese national Hutu, committed the fraud of issuing fake invoices (₹18.16 crore) to various Chinese firms/companies in which services were offered to Chinese nationals. The director was kept without genuine supply so as to take advantage of the fake. Input tax credit by Chinese firms, ET has learned reliably. Sources said that Jumpmonkey issued fake invoices to companies running illegal sugar loan apps such as Truthhigh Finance Pvt Ltd (₹0.36 crore), Ajay Solutions Pvt Ltd (₹0.18 crore), Bienance Information Technology Pvt Ltd (Rs 0.19 crore), Gorupi had done. Infintech Services Pvt Ltd (₹0.14 crore), and VCred Technologies Pvt Ltd (₹0.03 crore). Sources alleged that it is likely that Jumpmonkey (created in 2019) helped these illegal loan app companies launder money abroad.

ET has learned that over 1,000 pre-activated SIM cards were also exported to China and some re-entered India through Chinese nationals. About 1,650 pre-activated Indian SIM cards were sent to China through Star Spring, a Gurugram-based hotel, the people said. Four Chinese nationals were arrested as part of this network for smuggling SIM cards. Leading Chinese telecommunications firm ZTE reportedly had links with the hotel owner, a Chinese national, ET has learned.

It may be recalled that tax raids were conducted against ZTE Corp in 2021, after 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 . Social media has also been misused by Chinese companies for financial fraud. China Radio International (CRI), in its Tamil broadcast, advocates a pro-China stance by drawing an official Chinese line of economic slowdown and economic growth in China, criticism of Indian activities in the border areas and non-recognition of the union territory. Used to be. Ladakh.

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