MCA Probing Directors Of Chinese Cos In India To Ascertain Genuineness

MCA Probing Directors Of Chinese Cos In India To Ascertain Genuineness

SUMMARY

The ministry seeks to find out if Chinese directors and key executives are appointed to the boards of multiple companies

The ministry will track the shell companies operating in India and deregister them

MCA will also find and deregister shell companies illegally operating here and lending money via Chinese loan apps

The Ministry of Corporate Affairs (MCA) is closely scrutinising directors and other key executives of Chinese companies, which are incorporated in India, to ascertain if they are genuine enterprises and not shell companies.

According to the Economic Times report, through this investigation, the ministry seeks to find out if the said directors and key executives are appointed to the board of other companies, which will help identify other shell companies operating in the country.

“There have been instances of individuals being on boards of multiple companies,” a senior government official told the cited media company. 

The government official further informed that the probe aims to look into the authenticity of directors and multiple companies that they are heading in India.

Thereafter, the ministry will find out shell companies that are operating in the country and will deregister them from operating further.

Besides, the ministry is also ascertaining and deregistering shell companies that are illicitly operating and lending money via Chinese loan apps. At present, the Centre is probing such lending entities and individuals that are facilitating them.

The cited official said that under the probe, the Indian authorities are verifying the details of Chinese officials that are holding key positions in Indian business units of Chinese companies. The authorities are seeing if these officials are appointed directors in more than one company. This is helping them differentiate  genuine companies from shell companies. 

Earlier this year, the Ministry of Home Affairs (MHA) reported that 348 Chinese mobile apps were illicitly garnering and transmitting information from India to China.

Add to that, this month, the anti-money laundering body Enforcement Directorate (ED) carried out search operations in Razorpay offices and other banks relating to Chinese loan apps. During the probe, the ED seized worth INR 78 Cr funds from Chinese lending entities parking down with Razorpay’s payment gateway and other bank accounts.

This month, the Hyderabad police cracked a money laundering case worth INR 903 Cr involving a sham Chinese investment app.

Besides, the Centre is also closely scrutnising various Chinese smartphone makers and OEMs such as Huawei, Vivo, Xiaomi and Oppo among others relating to tax evasion and anti-money laundering cases.

Step up your startup journey with BHASKAR! From resources to networking, BHASKAR connects Indian innovators with everything they need to succeed. Join today to access a platform built for innovation, growth, and community.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.

You have reached your limit of free stories
Become An Inc42 Plus Member

Become a Startup Insider in 2024 with Inc42 Plus. Join our exclusive community of 10,000+ founders, investors & operators and stay ahead in India’s startup & business economy.

2 YEAR PLAN
₹19999
₹7999
₹333/Month
UNLOCK 60% OFF
Cancel Anytime
1 YEAR PLAN
₹9999
₹4999
₹416/Month
UNLOCK 50% OFF
Cancel Anytime
Already A Member?
Discover Startups & Business Models

Unleash your potential by exploring unlimited articles, trackers, and playbooks. Identify the hottest startup deals, supercharge your innovation projects, and stay updated with expert curation.

MCA Probing Directors Of Chinese Cos In India To Ascertain Genuineness-Inc42 Media
How-To’s on Starting & Scaling Up

Empower yourself with comprehensive playbooks, expert analysis, and invaluable insights. Learn to validate ideas, acquire customers, secure funding, and navigate the journey to startup success.

MCA Probing Directors Of Chinese Cos In India To Ascertain Genuineness-Inc42 Media
Identify Trends & New Markets

Access 75+ in-depth reports on frontier industries. Gain exclusive market intelligence, understand market landscapes, and decode emerging trends to make informed decisions.

MCA Probing Directors Of Chinese Cos In India To Ascertain Genuineness-Inc42 Media
Track & Decode the Investment Landscape

Stay ahead with startup and funding trackers. Analyse investment strategies, profile successful investors, and keep track of upcoming funds, accelerators, and more.

MCA Probing Directors Of Chinese Cos In India To Ascertain Genuineness-Inc42 Media
MCA Probing Directors Of Chinese Cos In India To Ascertain Genuineness-Inc42 Media
You’re in Good company