The Uttar Pradesh Special Task Force (STF) has busted an alleged Chinese-led hawala and shell company network operating from Gautam Buddha Nagar (Noida). It arrested a Chinese national along with two Indian associates for allegedly laundering money through fake companies and illegal financial transactions across India, senior STF officials said on Thursday.
Event Context
The three accused—Chinese national Liao Longhui, Sanjeev Kumar of Ghaziabad and Kaushlendra of Auraiya—were arrested from Sector-93, Noida, on Wednesday night following intelligence inputs about foreign nationals operating shell companies to facilitate hawala transactions and other financial crimes.
Team Analysis
During searches, the STF recovered five laptops, nine mobile phones, a tablet, two Chinese passports, a forged Aadhaar card bearing the Chinese national’s photograph, multiple PAN cards, bank cheque books of various companies, company incorporation documents, seals of 10 firms and cheques worth ₹4.72 crore, besides cash.
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According to the STF, Longhui entered India in 2018 and operated YTL Manufacturing Pvt Ltd, ostensibly engaged in manufacturing mobile phone covers. Investigators alleged that the company imported raw material from China, sold finished products in Indian markets through under-invoicing, and routed the surplus funds to China through hawala channels.
The probe further revealed that the accused allegedly used forged documents to obtain PAN and GST registrations for the company. STF officials said an earlier case involving forged company documents and violations under the Foreigners Act had already been registered against another individual linked to the firm.
Investigators said Longhui allegedly lured employees into allowing their identity documents to be used for creating multiple shell companies. The companies were allegedly used for money laundering and hawala operations.
The STF said preliminary investigation indicates the entire network was allegedly controlled by the Chinese national, while the Indian associates helped establish shell companies and open bank accounts used to route illicit funds. Investigators are also examining the role of a chartered accountant in facilitating the creation of the firms.
The agency further found that Longhui’s valid Indian visa had expired in 2020, but he allegedly continued living in the country illegally while expanding the shell company network and engaging in hawala and other financial offences.
An FIR has been registered at Phase-II police station in Gautam Buddh Nagar under relevant provisions of the Bharatiya Nyaya Sanhita and the Immigration and Foreigners Act, 2025. Further investigation is underway.
