Two accountants and a company secretary are already under the scanner of investigators, people in the know said.
The company, Grand Prospect International Communication Pvt Ltd, is a distributor of Chinese manufacturer Vivo’s products in Jammu and Kashmir. Falsified documents were allegedly used for company registration and obtaining directors’ identification numbers.
The three professionals had certified the documents despite knowing they were forged and filled with “false information”, the people claimed.
The trio also knowingly filed documents containing false information on behalf of the two Chinese nationals – Zhengshen Ou and Zhang Jie – with the Ministry of Commercial Affairs, they alleged.
A “subsidiary” created for fraudulent business
The Economic Crimes Wing of the Delhi Police filed a complaint against the company on a complaint from the Deputy Registrar of Companies in December.
On Tuesday, the Law Enforcement Branch raided nearly four dozen locations linked to Vivo and its associated entities, including Grand Prospect. The central agency is investigating whether shell companies have been used to launder money.
Vivo told ET on Tuesday that it is committed to full compliance with laws and is cooperating with authorities to provide them with all required information.
The two Chinese nationals are shareholders of Grand Prospect. The company falsely projected itself as a subsidiary of Vivo and was incorporated to conduct fraudulent activities, according to the deputy clerk’s complaint filed with police.
An investigation by the Deputy Registrar of Companies for Delhi and Haryana revealed that the two Chinese nationals were using the business address of a chartered accountant in New Delhi. The investigation also reportedly revealed that the CAs facilitated the incorporation of the company by “witnessing” the signatures and documents of Chinese nationals.
The Company Secretary, the Deputy Registrar or Companies investigation found, allegedly certified the processes relating to proactive enforcement and compliance with legal requirements under the Companies Act without auditing them.
The Deputy Registrar’s investigation also revealed that all of Grand Prospect’s current admins failed to meet the KYC requirement and had their admin ID numbers disabled.
In his complaint to the Delhi Police in December, the Deputy Registrar of Companies said failure to comply with the law by a professional CA or company secretary was a serious offence.
The investigative agencies are also looking into whether there were accomplices for the two CAs and the company secretary.