Chinese Apps Probe Leads ED To Money Laundering Through Human Hair Exporters In AP, Telangana

HYDERABAD/WEST GODAVARI:  With the Enforcement Directorate (ED) conducting an investigation into the money laundering scam against Chinese online betting applications led them to find hawala payments to the tune of Rs. 16 crore were made to human hair merchants based in Telangana and Andhra Pradesh.

As per reports the Foreign Exchange Management Act (FEMA) investigation was initiated against these hair merchants and the ED carried out search operations in eight premises of these human hair merchants/exporters in Hyderabad and in the West Godavari district of AP.

As part of the FEMA investigation, it was found that many domestic merchants were selling the raw hair to foreign merchants based in Hyderabad, Guwahati, and Kolkata. These hairs were smuggled out of India via road through  Manipur, Zokhawthar, and Aizawl to Myanmar, according to an ED press release. They were ultimately exported to China, where these were labeled as domestic Chinese hair and processed.

The Chinese traders would avoid import duty of 28 percent at the time of import and also earn eight percent export incentives at the time of export.

The ED  officials seized unaccounted cash of Rs 2.90 crore, 12 mobile phones, three laptops, a computer, handwritten diaries, basic account books, and papers containing incriminating information from the hair merchants.

These merchants could not explain the source of the cash found on their premises. Further, it was also found that two Hyderabad-based merchants had received Rs.3.38 crore for domestic sale to North-east merchants through illegal Chinese Apps (M/s Linkyun Technology Private Limited & M/s Dokypay Technology Private Limited)Company’s Paytm Accounts, the press release said.

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