Noida, July 24: The Uttar Pradesh Special Task Force (STF) has arrested three people, including a Chinese national, for allegedly operating a hawala network through multiple shell companies in Noida. The accused were reportedly involved in setting up fake firms and transferring large amounts of money through illegal channels, officials said.
The arrested individuals have been identified as Chinese citizen Liao Longhui, who was allegedly staying in India despite his visa expiration, along with Sanjeev Kumar from Ghaziabad and Kaushalendra from Auraiya.
According to the STF, the arrests were made on Wednesday night from Purvanchal Silver City in Sector 93, Noida, following an investigation into suspicious financial transactions linked to several companies.
Additional Superintendent of Police of the STF Noida Unit, Rajkumar Mishra, said the investigation revealed that the accused allegedly created fake companies in India and China to facilitate illegal money transfers through hawala channels.
During the operation, STF officials recovered several electronic devices and financial documents, including five laptops, nine mobile phones, a tablet, multiple company stamps, cheque books, bank-related records and other documents connected with suspected shell companies.
The team also seized a forged Aadhaar card carrying Liao’s photograph under another name, two PAN cards, two Chinese passports, a Chinese identity card, cheques worth around Rs 4.72 crore and cash amounting to Rs 15,400.
Investigation Traced Money Trail Through Manufacturing Firm
The STF probe reportedly led investigators to YTL Manufacturing Pvt Ltd, a Noida-based company operating from Sector 83. Officials alleged that the company was being managed by Liao Longhui and was linked to the suspected financial network.
During questioning, Liao and his associates were asked to provide company records and visa-related documents. However, investigators claimed that he failed to submit complete documentation and said that remaining papers were available at his residence.
Following this information, STF officials conducted a search at his Sector 93 residence, where they allegedly recovered documents and cheque books connected to multiple companies suspected of being used for financial irregularities.
The accused were subsequently taken into custody.
Alleged Use of Fake Firms for Money Laundering
During interrogation, Liao reportedly told investigators that he had arrived in India in 2018 and was involved with YTL Manufacturing Pvt Ltd, a company established by his family members.
The STF alleged that the company imported mobile phone cover manufacturing materials from China at inflated prices and sold finished products in Delhi markets, including Karol Bagh and Nehru Place.
Investigators claimed that the alleged difference in transaction values was used to move funds abroad through hawala channels, with money eventually being routed back to China.
Officials further alleged that Liao used documents of company employees to create several other firms, including JNS Infra Heights Pvt Ltd, Refan Enterprises India Pvt Ltd, Tidydesk Essential Pvt Ltd and Z One Enterprises.
Another company, Hanuraj Trading Solution Pvt Ltd, was allegedly registered in the name of Liao’s driver and was reportedly used for financial transactions connected to the suspected network.
Chartered Accountant Role Under Scanner
The STF has also alleged that Sanjeev Kumar, a chartered accountant, played an important role in establishing shell companies and opening bank accounts that were allegedly used for hawala transactions.
Kaushalendra has also been accused of assisting in the operation of the network, according to investigators.
Officials said the investigation is examining financial records, company registrations and banking transactions to identify the full extent of the alleged operation.
Visa Violation Angle Emerges During Probe
The STF said preliminary investigation indicated that Liao’s Indian visa expired in 2020 and that he allegedly continued to stay in the country without valid permission.
Authorities are now investigating whether the accused were involved in other financial crimes, illegal business activities or additional hawala networks operating through similar shell companies.
The STF has launched further inquiries into the case, and more arrests may follow as investigators analyse documents and financial links recovered during the operation.