India is a potential market for an international investor in the world’s largest and most complex money laundering network.
The International Consortium of Investigative Journalists (ICIJ) said in a report released on Tuesday that its research has revealed a possible acquisition of a key player in the black market in the country by an MLM firm.
India’s largest online marketplace for online retailing, Paytm, said in March that it would buy stakes in the leading online marketplace Snapdeal, which is owned by Snapdeal’s parent company Flipkart, in what would be the largest acquisition in Indian online retail.
The ICIJ report said the sale of stakes in online platforms would enable Snapdeal to expand its global footprint in the Indian market.ICIJ said it has found evidence of “serious money laundering, corruption, tax evasion, and tax avoidance activities” at Snapdeal.
The Indian government, which has long sought to crack down on the black economy, has made it a priority to crack up the money-laundering network of Indian online businesses.
The government’s goal is to have all of India’s online retailers and sellers in compliance with all existing laws and regulations.