Alibaba's India Unit Filed 'Fabricated' Documents, Probe Finds

Alibaba Group Holdings Ltd. BABA's India unit filed "false or fabricated" documents, a probe into the affairs by the Indian regulator has found, according to the sources of the Economic Times.

Alibaba Cloud (India) LLP is currently being investigated by the Indian Ministry of Corporate Affairs (MCA) and the Mumbai Police for alleged irregularities.

The city police launched their probe against the Chinese company after a complaint was filed by the Registrar of Companies (RoC), alleging criminal conspiracy, breach of trust, and falsification of documents under the Indian Penal Code and the Information Technology Act.

The investigations found that certain information shared by the company's representative with the RoC was "untrue."

It further revealed that after the incorporation of the India unit in March 2017, the company's Indian-origin partner resigned and the business was transferred to Chinese nationals.

An email sent by Benzinga to Alibaba Group seeking comment didn't elicit any response till the time of publishing this story.

Recently Alibaba's chartered accountant, Anand Kidambi, also moved India's top court seeking to quash an FIR against him.

While the MCA claimed that the professional had helped incorporate the company by filing fabricated documents, the Supreme Court of India directed it not to take any coercive action against Kidambi until further orders.

Price Action: According to data from Benzinga Pro, ​​Alibaba shares were trading 4.73% higher in the premarket on Tuesday.