SFIO arrests masterminds of Chinese shell companies trying to flee India


New Delhi: The government on Saturday arrested chief conspirator and mastermind “Dortse,” who had ties to China and is responsible for all the noise building a large number of shell companies in India, in a wholesale crackdown on Chinese shell companies in India.

Dortse has clearly emerged as the mastermind of the whole brawl to integrate a large number of shell companies with Chinese connections in India, the Corporate Affairs Ministry said in a statement Sunday morning.

What’s happening?

The Serious Fraud Investigation Office (SFIO) said the agency arrested Dorste on September 8 following search and seizure operations by the Department of Corporate Affairs.

“Following the simultaneous search and seizure by the Ministry of Corporate Affairs on September 8 at the offices of Jillian Consultants India Private Ltd, a wholly owned subsidiary of Jilian Hong Kong Ltd., in Gurgaon, Fininty Pvt Ltd in Bangalore and Husys Consulting Ltd, a formerly listed company in Hyderabad, SFIO 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 brawl to integrate a large number of shell companies with Chinese connections in India and use dummy directors on their boards, she added.

Evidence obtained during the investigation by ROC Delhi and the simultaneous search operations clearly indicates that dummy directors of Jilian India Ltd. paid to act as dummies in several shell companies, the press release said, adding that boxes filled with company seals and dummy digital signatures directors were recovered from the site.

The Indian employees were in contact with the Chinese colleagues via a Chinese instant messaging app. It was also found that Husys Ltd. on behalf of Jilian India Ltd. acts. First observations show that Husys Ltd. a pact with Jilian Hong Kong Ltd. would have.

Investigations to date have revealed the possible involvement of these shell companies in serious financial crimes that are detrimental to the country’s financial security, the statement said.

Dortse had been found to be a resident of Mandi in Himachal Pradesh according to records filed with the Companies Register.

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

The failed escape

According to the statement, based on submissions and investigations conducted, it was determined that Mr Dortse had fled Delhi NCR to a remote location in Bihar state and was attempting to escape India by road.

A special team was immediately formed in the SFIO, which was delegated to said remote location.

By the evening of September 10, SFIO had arrested Dortse, who was later brought before the Jurisdictional Court and remanded in custody.

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