A dossier related to the arrest of alleged Chinese hawala trader Luo Sang back in 2018 showed that police had seized an Aadhaar card, a PAN card, and a passport issued in the name of Charlie Peng, his fake Indian identity.
Luo Sang was arrested by Delhi's Special Cell police station two years ago in relation to a Hawala racket but was eventually let off by the court. Other items confiscated from his possession included a passport in the name of one Lalthara Khawlhring, a Toyota Fortuner SUV, and $2,000, Rs 3,40,000, and 22,000 Thai baht.
In its probe against the Hawala racket run by Chinese entities and their Indian accomplices, the Income Tax (I-T) Department discovered that Sang had assumed the identity of an Indian national, Charlie Peng. He has been allegedly running the racket for the past three years and used to change addresses frequently.
The dossier showed that Sang was originally from Lhasa district in Tibet. Meanwhile, the Aadhaar number had two addresses, one in Delhi's Dwarka and another in Manipur, seeded into it. The passport bore an address in Manipur as well. However, his address at the time of his arrest in 2018 was DLF Phase-5, Gurugram. The probe further revealed that he also married a girl from Manipur.
An initial probe by the tax department revealed that Pang was representing many Chinese firms for hawala operations in India. With the help of some employees at Bandhan Bank and ICICI Bank, he was infusing around Rs 3 crore through Hawala daily. It was found that Sang operated over 40 bank accounts, created by various dummy entities, which received advances of thousands of crores from shell companies. Tax officials also raided bank employees and premises of several Chinese companies, suspecting the scam to be well over Rs 1,000 crore.
The scam was unearthed after the I-T Department received credible information that a few Chinese individuals and their Indian associates were involved in money laundering and hawala transactions through a series of shell entities.