Three persons, including a Chinese national who was allegedly staying illegally in India after his visa expired, have been arrested in Noida for operating a hawala network and setting up multiple shell companies to launder money, the Uttar Pradesh Special Task Force (STF) said.
The accused were identified as Chinese national Liao Longhui, currently residing in Sector 93, Noida, Sanjeev Kumar, a resident of Ghaziabad, and Kaushalendra, a resident of Auraiya, it said on Thursday evening.
Additional Superintendent of Police, STF Noida Unit, Rajkumar Mishra said the trio was arrested on Wednesday night from Purvanchal Silver City in Sector 93 following a probe into suspicious financial transactions.
According to the STF, the gang established fake companies in India and China and illegally transferred large sums of money abroad through hawala channels.
The STF recovered five laptops, nine mobile phones, one tablet, a forged Aadhaar card bearing the name “Samuel Lotha” but carrying Liao’s photograph, two PAN cards, 10 company stamps, two Chinese passports, one Chinese identity card, 11 cheque books of different banks, invoices, cheques valued at Rs 4.72 crore and Rs 15,400 in cash.
Mishra said the investigation led the STF to YTL Manufacturing Pvt Ltd, a company registered at a Noida address and operating from Sector 83. The firm was allegedly being run by Liao Longhui.
The STF summoned Liao along with his Indian associates, Sanjeev Kumar and Kaushalendra, for questioning along with company documents.
During interrogation, Liao failed to produce complete visa and company-related records and informed investigators that the remaining documents were kept at his residence in Purvanchal Silver City.
A subsequent search of the premises led to the recovery of cheque books and documents related to several suspected shell companies, following which the three accused were arrested at around 10 pm on Wednesday, Mishra said.
During questioning, Liao told investigators that he came to India in 2018 and had been managing YTL Manufacturing Pvt Ltd, a company established by his father-in-law Mugen Yu and brother-in-law Quiping Tang.
The company manufactured mobile phone covers by importing raw materials from China at inflated prices and selling finished products in Delhi’s Karol Bagh and Nehru Place markets through under-invoicing, police said.
According to the STF, the remaining funds were allegedly transferred abroad through hawala channels and eventually routed back to China.
Investigators alleged that Liao induced several employees of YTL Manufacturing Pvt Ltd to provide their documents, which were then used to establish shell companies, including JNS Infra Heights Pvt Ltd, Refan Enterprises India Pvt Ltd, Tidydesk Essential Pvt Ltd and Z One Enterprises.
Another shell company, Hanuraj Trading Solution Pvt Ltd, was allegedly floated in the name of his driver Devendra and used for money laundering, the STF said.
Police alleged that the entire racket was operated by Liao with the assistance of Kaushalendra and Kumar, a chartered accountant, who is suspected to have played a key role in incorporating the shell companies and opening bank accounts used for hawala transactions.
The STF said investigations also revealed that Liao’s Indian visa expired in 2020 and that he had been living illegally in the country since then while allegedly carrying out hawala operations and other financial crimes through the network of shell companies.
Further investigation is underway, police said.
