Indian authorities arrested Luo Sang, a Chinese national, on charges of money laundering on August 4, night in a raid by the Income Tax Department for money laundering and representing fake Chinese companies in hawala transactions. He was earlier reported to have been arrested by the Delhi Police on spying charges in 2018. NDTV said Investigations “revealed that Luo Sang had illegally entered India from Nepal in 2014. He married a woman from Mizoram and took up Indian identity with a fake passport issued from Manipur. He also got an Aadhaar card and PAN card made in that name.” It’s incredible that this man was reportedly charged with espionage in 2018 and possessing fake documents. NDTV also reports that Luo was apparently looking to bribe people for information on the Dalai Lama. Luo Sang was said to be using 8-10 bank accounts and represented fake Chinese companies in hawala operations worth Rs 300 crore. CBDT officials also said that he was dealing with transactions of around Rs 3 crore using hawala on daily basis in connivance with employees in Bandhan Bank and ICICI bank. Officials suspect that this is a scam worth thousands of crores of rupees. 

According to them, he held over 40 bank accounts, which were used for various transactions. They also said hawala transactions involved Hong Kong and US dollars. Responding to Luo’s arrest, China’s MoFA said that the government “requires Chinese enterprises to abide by international rules and local laws and regulations,” and that China hopes India will “provide a fair, just and non-discriminatory environment for Chinese enterprises' operations.”

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