Indian authorities claim to have arrested a man who planned to set up several shell companies linked to China and appointed dummy directors to run the fraudulent business.
According to Reuters, the latest arrest was part of a larger investigation by the federal government's Serious Fraud Investigation Office (SFIO) against the founders of shell companies involved in illegal transactions.
The SFIO has said it has arrested a man named Dorts, who was on the board of Jillian India Limited, a wholly-owned subsidiary of Jillian Hong Kong Limited, and has searched several locations to trace the fraud. There were raids.
It did not explain the Chinese links of the shell companies, nor did it reveal the nature of the alleged fraud.
According to the SFIO, for the directors of several shell companies, Dortis used the names of Indian nationals who had no education and worked in menial jobs.
The Indian Express newspaper reported that local police have arrested two directors of a company, including a Chinese national, for their involvement in providing dummy directors to Chinese-linked shell companies.
