Chinese national among three held in Noida for running shell firms, hawala racket: UP STF

Chinese National Among Three Held in Noida for Hawala Racket

Bharatmorningnews.com – The Uttar Pradesh Special Task Force has successfully apprehended three suspects involved in a sophisticated money-laundering operation that utilized hawala channels and shell companies. Notably, the Chinese national among three held in Noida is Liao Longhui, a Chinese citizen who allegedly overstayed his visa and operated financial activities without proper authorization. This arrest marks a significant development in the state’s efforts to combat illegal financial transactions.

Arrest Details and Investigation

According to official statements released on Thursday evening, the trio was taken into custody on Wednesday night from Purvanchal Silver City in Sector 93, Noida. The other two accused individuals are Sanjeev Kumar from Ghaziabad and Kaushalendra, a chartered accountant from Auraiya district. Rajkumar Mishra, Additional Superintendent of Police leading the Noida STF Unit, revealed that the arrests followed a thorough investigation into suspicious financial movements.

During the search operation, authorities recovered substantial evidence including five laptops, nine mobile phones, one tablet device, and a forged Aadhaar card. This fraudulent document bore the name “Samuel Lotha” but displayed Liao’s photograph, indicating attempts to create false identities for financial operations.

Financial Evidence and Shell Companies

Police seized valuable items worth millions during the raid. The recovered evidence included two PAN cards, ten company stamps, two Chinese passports, one Chinese identity document, eleven cheque books from various banks, invoices, and cheques totaling ₹4.72 crore alongside ₹15,400 in cash. These documents helped establish crucial connections to multiple shell companies registered under different names.

Mishra noted that Liao failed to present complete visa and corporate records during initial questioning. He stated that additional paperwork remained at his residence in Purvanchal Silver City, which was later searched and yielded further evidence related to suspected shell entities. The Chinese national among three held was found to have been actively managing business operations despite his visa expiration.

Business Operations and Money Laundering Network

During interrogation, Liao revealed that he arrived in India in 2018 and began managing YTL Manufacturing Pvt Ltd, a firm registered at a Noida address and operating from Sector 83. He claimed the company was established by his father-in-law Mugen Yu and brother-in-law Quiping Tang. The business imported raw materials from China at inflated prices and manufactured mobile phone covers.

These products were then sold in Delhi’s Karol Bagh and Nehru Place markets using under-invoicing techniques. Funds not retained locally were allegedly sent abroad through hawala channels before being routed back to China. This circular money flow pattern helped disguise the true source and destination of funds.

Expansion of Shell Company Network

Investigators discovered that Liao persuaded several YTL Manufacturing employees to hand over their personal documents. These papers were subsequently utilized to register additional shell companies, including JNS Infra Heights Pvt Ltd, Refan Enterprises India Pvt Ltd, Tidydesk Essential Pvt Ltd, and Z One Enterprises. Another entity, Hanuraj Trading Solution Pvt Ltd, was reportedly floated under the name of Liao’s driver, Devendra, and served as a vehicle for money laundering activities.

Kaushalendra, who works as a chartered accountant, is believed to have played a crucial role in incorporating these companies and opening bank accounts for hawala transactions. Sanjeev Kumar also provided assistance in running the operation. STF investigations confirmed that Liao’s Indian visa expired in 2020. Despite this, he continued residing in the country while allegedly conducting hawala operations and other financial offenses through his network of shell companies. The three accused were formally arrested at approximately 10 pm on Wednesday evening.