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SFIO arrests mastermind of Chinese shell companies while trying to flee India

The arrested 'clearly emerged as the mastermind of the whole racket' of incorporating large number of shell companies with Chinese links in India.

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New Delhi: The government, in a major crackdown on Chinese sheel companies in India, on Saturday arrested the chief plotter and mastermind ‘Dortse’, who had links with China and is responsible for the whole racket of incorporating a large number of shell companies in India.

Dortse has clearly emerged as the mastermind of the whole racket of incorporating large number of shell companies with Chinese links in India, a Ministry of Corporate Affairs statement said on Sunday morning.

What’s the matter?

The Serious Fraud Investigation Office (SFIO) said that after search and seizure operations conducted by the Ministry of Corporate Affairs on 8th September, the agency had arrested Dorste.

“After the simultaneous search and seizure operations conducted by the Ministry of Corporate Affairs on 8th September, on the offices of Jillian Consultants India Private Ltd, a wholly owned subsidiary of Jilian Hong Kong Ltd., at Gurgaon, Fininty Pvt Ltd at Bangalore and Husys Consulting Ltd, an erstwhile listed company at Hyderabad, the SFIO has arrested Dortse yesterday,” the statement said.

Dortse is on the Board of Jillian India Ltd and has clearly emerged as the mastermind of the whole racket of incorporating large number of shell companies with Chinese links in India and providing dummy Directors on their Boards, it added.

Evidence procured during the enquiry by ROC Delhi and the simultaneous search operations clearly points to dummy Directors being paid by Jilian India Ltd. to act as dummies in several shell companies, the release said, adding that boxes filled with company seals and digital signatures of dummy directors have been recovered from the site.

The Indian employees were in touch with the Chinese counterparts through a Chinese instant messaging app. Husys Ltd. was also found to be acting on behalf of Jilian India Ltd.. Initial observations reveal that Husys Ltd. had a pact with Jilian Hong Kong Ltd.

Investigations so far have revealed the possible involvement of these shell companies in serious financial crimes detrimental to the financial security of the country, the statement said.

Dortse had shown himself to be a resident of Mandi in Himachal Pradesh as per the records filed with the Registrar of Companies.

The Ministry of Corporate Affairs, under whose aegis SFIO operates, had assigned the investigation of Jilian Consultants India Private Limited and 32 other companies to SFIO on 9th September. Dortse and one Chinese national are the two directors in Jilian Consultants India Private Limited, the statement said.

The failed escape

According to the statement, based on inputs and the investigations carried out, it was gathered that Mr. Dortse had fled from Delhi NCR to a remote place in the state of Bihar and was attempting to escape India through the road route.

Immediately, a special team was constituted in SFIO which was deputed to the said remote place.

In the evening of 10th September SFIO had arrested Dortse, who was later produced in the Jurisdictional Court and Orders for his transit remand were obtained.

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