Chinese enterprises under investigation in India for tax evasion and shady financial dealings were allegedly collecting personal data on a large number of people, with the suspected actual beneficiaries being senior Chinese Communist Party officials (CCP).
National security concerns about such access are amplified by the fact that Beijing has access to most of this data since Chinese enterprises are required to disclose data under domestic legislation. It is been stated that these Chinese enterprises are owned by top members of the Communist Party.
The Registrar of Firms (RoC) has now set up cells across India to investigate suspected incidences of shell companies involving Chinese nationals related to apps promoting online betting and dating, ET has learned.
With the rise of India’s digital economy, Chinese corporations gained easy access to personal data. Mobile games and apps were used to entice customers looking for “simple loans,” but they ended up paying a high interest rate, according to industry sources.
According to sources, up to 40 non-banking financial companies with ties to China may have their licences revoked.
Meanwhile, Chinese telecom businesses were raided, and it was discovered that they were breaking Indian law by hiding transactions with their partner companies. EXIM breaches and GST manipulations have been filed against several Chinese enterprises in India.