The Enforcement Directorate (ED) is intensifying its investigation into allegations of money-laundering involving companies importing goods from China, officials have told Business Today TV. Several Indian firms are suspected of having violated laws by under-invoicing luxury products such as furniture and gadgets imported from China. This practice helps these firms evade taxes, with the remaining payment being funnelled to Chinese sellers via hawala networks, officials claimed.
The Ministry of Finance, External Affairs, and Home Affairs have coordinated closely with the ED on the probe. Officials claim that in the past six months alone, Indian firms have allegedly siphoned off Rs 50,000 crore to Chinese sellers through this under-invoicing tactic. These companies are believed to have violated both anti-money laundering and foreign exchange regulations.
The ED has initiated a formal investigation under the Prevention of Money Laundering Act (PMLA) and is looking into how the remaining funds are rerouted to China. The agency is also investigating the use of cryptocurrencies in these transactions, as many payments are reportedly being made through digital currencies. Sources indicate that the crackdown is part of a broader government effort to curb illegal financial flows and strengthen the country’s economic security.
The ED’s probe is expected to widen, as the agency tracks the suspected misuse of funds and further evaluates financial activities tied to Chinese imports..
