ccp: CCP-linked Chinese companies kept personal data of Indians


Chinese companies being investigated in India for tax evasion and dodgy finances were reportedly gathering the personal data of a large number of individuals, and the alleged real beneficiaries were senior members of the Chinese Communist Party (CCP).

National security concerns over such access are exacerbated by the fact that Beijing can harness much of this data as Chinese companies are bound by data disclosure norms in accordance with their domestic laws. Many Chinese companies trace their ownership to senior members of the Communist Party, ET has reliably learnt.

Given the reports of shell companies involving Chinese nationals linked with apps promoting online betting and dating, the Registrar of Companies (RoC) has now set up cells across India to probe such reported incidents, ET has further learnt.

Chinese companies found easy access to personal data with the growth of the digital sector in India. Mobile games and apps were used to attract customers seeking “easy loans” but they ended up with a high interest burden, sources tracking the sector said.

As many as 40 non-banking financial companies with links to the Chinese may face licence cancellations, sources said.

Shopee, whose owners are traced back to China, suddenly stopped operations this March as complaints began to surface.


EXIM-, GST-related violations

One of the apps of Shoppe’s parent investor had been banned after the Galwan incident. Some Chinese companies in India have transacted through shell companies.

Raids on Chinese telecom companies reveal that they failed to comply with the Indian law by hiding transactions with their associate companies. Certain Chinese firms in India have been charged with EXIM-related violations and GST-related manipulations.

Fake invoices were raised to avail of fake input tax credit. ET had reported in March that the government unearthed several cases of illegal activities by Chinese business entities either directly or through proxies across sectors including telecom, higher education and small finance.

ET had then reported that more than a dozen Chinese loan apps targeting the low-income categories have come under the scanner of Indian security agencies. Chinese companies are part of the largest illegal financial flows globally — not just India.


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