Police bust Beijing hukou scalpers

Residence permits in first-tier cities, especially in Beijing and Shanghai, become hot facing the soaring of population inflows. [Photo: news.sdchina.com]

Beijing police have busted a gang of 16 members allegedly scalping permits for permanent residence in the city, better known as "hukou", according to a report from website ifeng.com.

The 16 suspects all work for state-owned or high-tech enterprises that would be allocated a certain number of the permits by the city's authorities every year for their new employees.

Usually, the residence permit policy prefers new graduates, while applicants with higher degrees would have higher possibilities.

Only with a local hukou, could one have access to public services and social security benefits provided by the local government.

Residence permits in first-tier cities, especially in Beijing and Shanghai, become hot facing the soaring of population inflows.

Police say the gang sold the permits to about 80 graduates not employed by their companies, which brought in more than 3 million yuan.

The procurator has ratified the arrest of 13 of them on suspicion of buying and selling official documents, and abuse of power.

The gang began posting advertisements online in 2011, but didn't arouse police vigilance until this June.

The city's population management departments have launched investigations into the permit buyers, while the police warned of the consequences of the hukou purchase.