India is no stranger to foreign-owned and run businesses.
But the country has witnessed the emergence of a new generation of foreign-run firms in the last few years.
With the country’s rapid growth, the number of companies that are foreign owned and run is growing.
India has been in the spotlight for a long time over the use of fake identities and companies.
The government, however, has struggled to crack down on the issue, partly due to a lack of evidence.
Now, it is looking to take action against the likes of the company Aseel, which has been accused of paying false invoices.
What is the impact of fake identity?
Aseel is the second largest company in India with a turnover of more than $8 billion.
Its CEO Anurag Chaturvedi is the countrys largest shareholder and is the Chairman of the National Association of Enterprises and Cement Enterprises.
He also holds a share in the National Chemical and Rubber Corporation (NCRIC) and a stake in Tata Steel.
In the wake of the scam, Chaturve has been on a crusade to make sure his company is held to account.
In December 2017, Chattanooga-based the company was slapped with a Rs 1.15 crore tax evasion case after it was discovered that it had been operating illegally in the country for a decade.
Chaturves business dealings, however he denied any wrongdoing and claimed the company’s revenues were over $3 billion.
He had also denied that he had any role in the company being used as a shell company by his company.
In 2018, the government launched a probe into the company and brought charges against the company for misappropriating tax revenues and falsely claiming revenue.
The probe led to the arrest of Chaturvadi, the company chairman.
However, the case was later dropped in 2018 due to lack of proof.
The case has now been handed over to the Central Bureau of Investigation (CBI) for further investigation.
Sources: The Hindu, Business Standard, Forbes, Daily Star, NDTV