Ministry of Corporate Affairs (MCA) crackdown on Chinese shell companies in India – Serious Fraud Investigation Office (SFIO) detains the main plotter and the organiser.
The Serious Fraud Investigation Office (SFIO) has arrested Mr. Dortse following the simultaneous search and seizure operations carried out by the Ministry of Corporate Affairs on September 8, 2022, at the offices of Jillian Consultants India Private Ltd, a wholly owned subsidiary of Jilian Hong Kong Ltd., in Gurgaon, Fininty Pvt Ltd, in Bangalore, and Husys Consulting Ltd, a formerly listed company, in Hyderabad.
Mr. Dortse, who serves on the board of Jillian India Ltd., has emerged as the scheme’s mastermind after being involved in the incorporation of numerous shell businesses with connections to China in India and the appointment of fictitious directors to their boards. According to the documents submitted to the Registrar of Companies, the person who was arrested, Mr. Dortse, had demonstrated that he resided in Mandi, Himachal Pradesh.
Jilian India Ltd. definitely paid dummy Directors to act as dummies in multiple shell companies, according to evidence gathered during the investigation by ROC Delhi and the concurrent search activities. From the site, boxes containing corporate seals and fictitious directors’ digital signatures were retrieved. A Chinese instant messaging programme was used to communicate between the Chinese and Indian personnel. Additionally, it was discovered that Husys Ltd. was representing Jilian India Ltd. According to preliminary findings, Husys Ltd. and Jilian Hong Kong Ltd. struck a deal. Investigations to date have shown that these shell corporations may have been involved in severe financial crimes that threatened the nation’s financial security.
Jilian Consultants India Private Limited and 32 other companies were the subject of an inquiry by SFIO on September 9, 2022, at the request of the Ministry of Corporate Affairs, which oversees the organisation. The two directors of Jilian Consultants India Private Limited are Mr. Dortse and a Chinese citizen. According to information received and the results of the investigations, Mr. Dortse escaped the Delhi NCR for a distant location in the state of Bihar and was attempting to leave India by car. An immediate special team was formed inside SFIO and sent to the mentioned remote location. Mr. Dortse was detained by the SFIO on the evening of September 10th, 2022. He was later brought before the jurisdictional court and orders for his transit remand were obtained.
