Mastermind of China-linked shell companies arrested in Gaya while trying to escape India

New Delhi, Sep 11: In a huge crackdown, the Serious Fraud Investigation Office (SFIO) arrested the mastermind of Chinese shell companies on Saturday. The man, identified as a Dorste was arrested from Gaya while he was trying to escape India through the land route.

In a press release, the Serious Fraud Investigation Office (SFIO) said that after search and seizure operations conducted by the Ministry of Corporate Affairs on 8th September, the agency had arrested Dorste.

A search and seizure operations conducted by the Ministry of Corporate Affairs on 8 September, on the offices of Jillian Consultants India Private Ltd, a wholly owned subsidiary of Jilian Hong Kong Ltd., at Gurgaon, Fininty Pvt Ltd at Bangalore and Husys Consulting Ltd, an erstwhile listed company at Hyderabad.

"Dortse is on the Board of Jillian India Ltd and has clearly emerged as the mastermind of the whole racket of incorporating large number of shell companies with Chinese links in India and providing dummy Directors on their Boards. The arrested person Dortse had shown himself to be a resident of Mandi in Himachal Pradesh as per the records filed with the Registrar of Companies," the press release said.

"Evidence procured during the enquiry by ROC Delhi and the simultaneous search operations clearly points to dummy Directors being paid by Jilian India Ltd. to act as dummies in several shell companies. Boxes filled with company seals and digital signatures of dummy directors have been recovered from the site," said the release.

"The Indian employees were in touch with the Chinese counterparts through a Chinese instant messaging app. Husys Ltd. was also found to be acting on behalf of Jilian India Ltd," it said.

Initial observations reveal that Husys Ltd. had a pact with Jilian Hong Kong Ltd. Investigations so far have revealed the possible involvement of these shell companies in serious financial crimes detrimental to the financial security of the country," it added.

The Ministry of Corporate Affairs, under whose aegis SFIO operates, had assigned the investigation of Jilian Consultants India Private Limited and 32 other companies to SFIO on 9th September 2022.

Dortse and one Chinese national are the two directors in Jilian Consultants India Private Limited. Based on inputs and the investigations carried out, it was gathered that Dortse had fled from Delhi NCR to a remote place in the state of Bihar and was attempting to escape India through the road route.

Immediately, a special team was constituted in SFIO which was deputed to the said remote place.

On Saturday evening, SFIO arrested Dortse, who was later produced in the Jurisdictional Court and Orders for his transit remand were obtained.