The Serious Fraud Investigation Office (SFIO) has arrested the main conspirator behind the formation of shell companies with Chinese links in India. This person used to provide fake directors for the board of directors of these companies with links to China. This arrest has happened as part of the campaign being run against the shell companies of China. These companies with links to China are involved in serious financial crimes in India.
The Ministry of Corporate Affairs said in a statement on Sunday that a person, Dortsey, has been arrested in this case, who was on the board of directors of Jillian India. During investigation, it was revealed that Dortse has fled from Delhi-NCR to the state of Bihar and is trying to flee the country by road. Immediately thereafter, a special team was formed in SFIO. At the same time, on Friday evening, the team arrested Dortse from Gaya in Bihar. On September 8 raids and seizure operations were carried out in the Hyderabad offices of Jillian Hong Kong Ltd. wholly owned subsidiary of Jillian Consultants India Pvt. K Gurugram, Finnty Pvt. Ltd. K Bangalore and Husseys Consulting Ltd.
Dortsey is on the board of Jillian India, the statement said. He was the main kingpin in the racket of setting up a large number of shell companies with links to China and providing them fake directors in India. According to the data available with the Registrar of Companies, Dortse used to identify himself as a resident of Mandi in Himachal Pradesh. The ministry said that the evidence found so far shows that these fake or bogus directors were paid by Jillian.
The Serious Fraud Investigation Office (SFIO) also raided Dortse’s Finity Private Limited in Bengaluru, Hussey’s Consulting Limited, a former listed company in Hyderabad. Dortse had appointed a fictitious director in Jillian Consultants India Pvt Ltd.
What is a Shell Company?
A shell company is one that is established and registered only on paper. But this type of company has no real identity, capital, offices and employees. Such companies are used in financial crime.