Chinese national, two held in Noida over shell firms, hawala racket
Three Individuals Arrested in Noida for Shell Company and Hawala Network
Bharatmorningnews.com – Authorities in Noida have detained three suspects, including a Chinese national two held in Noida, in connection with a sophisticated shell company and hawala money transfer operation. The Uttar Pradesh Special Task Force (UPSTF) executed the arrests after months of surveillance revealed how these individuals were channeling funds between India and China through fraudulent business entities.
The investigation uncovered a complex network of shell companies that had been operating for nearly six years. According to police sources, the primary business entity was registered as a mobile phone cover manufacturing unit, but its actual purpose was to facilitate illegal money transfers. The operation led to the seizure of cheques worth over ₹4 crore, along with multiple laptops, mobile phones, and documentary evidence.
How the Hawala Racket Operated
The scheme involved importing raw materials from China at artificially inflated prices to create the appearance of legitimate business transactions. Once the goods arrived in India, they were manufactured into mobile phone covers and sold in Delhi at significantly lower market prices. The difference between the inflated import costs and actual sale prices was then routed to China through hawala channels, effectively moving money out of the country without going through formal banking systems.
Rajkumar Mishra, additional superintendent of police for UPSTF in Noida, explained the modus operandi: “The company imported raw materials from China at inflated prices to manufacture mobile phone covers in India, sold the finished products in Delhi at lower prices and sent the remaining money to China through hawala channels.”
Arrest Details and Evidence
The Chinese national, identified as a 38-year-old resident of Fuzhao, China, has been living in Sector 93, Noida, since his visa expired in 2020. He was arrested alongside two Indian associates from Ghaziabad and Auraiya. During the raid at the Sector 93 residence, police discovered cheque books belonging to multiple shell companies, various business documents, and a counterfeit Nagaland Aadhaar card issued to the Chinese national.
Further investigation revealed that the company was established in 2018 by the Chinese national’s father-in-law and brother-in-law. A Noida resident who held shares in the company was also detained for obtaining PAN and GST registrations using falsified documents in 2019. The case was registered at Beta 2 Police Station.
Mishra added: “A 38-year-old Chinese national, a native of Fuzhao, China, and a resident of Sector 93, Noida, along with his two Indian associates from Ghaziabad and Auraiya, was called for questioning. They said the company’s documents were kept at the Sector 93 residence.”
Legal Proceedings and Recovery
Authorities also discovered that the accused were operating shell companies registered in Hong Kong and other international jurisdictions to facilitate money laundering. The total value of cheques recovered amounted to ₹4.7 crore, along with ₹15,400 in cash. The seized items included five laptops, nine mobile phones, eleven cheque books, and extensive documentation related to the shell companies.
All three accused have been charged under relevant provisions of the Bharatiya Nyaya Sanhita (BNS) and the Immigration and Foreigners Act, 2025 at Phase 2 Police Station. The case highlights the growing concern over illegal fund transfers through sophisticated shell company networks, particularly involving Chinese nationals residing in India.
Arun Singh covers crime, traffic, court and the transport department for Hindustan Times in Noida. He has a strong interest in developing in-depth stories that engage readers. Previously, he covered crime, traffic, infrastructure and soft beats for The Times of India in Bhopal for nearly five years. His reports are known for including details often missed by other publications.