Lucknow, Aug 24 (PTI) The Enforcement Directorate on Monday carried out searches at multiple locations in Uttar Pradesh and Haryana as part of a money laundering investigation linked to a GST fraud case, officials said.
Nine premises in Muzaffarnagar and Ghaziabad in Uttar Pradesh, apart from those in Haryana’s Faridabad, were searched under the provisions of the Prevention of Money Laundering Act (PMLA) in a case related to “fraudulent” availment of bogus Input Tax Credit (ITC), they said.
The probe involves a company named Jambudwip Exports and Imports. It is alleged that the company generated and passed bogus ITC through fabricated invoices and e-way bills without actual movement of goods, they said.
The company could not be contacted immediately for a comment on the ED action.
The ED alleged that the company deployed circular transactions, layered funds and cash withdrawals through multiple bogus/non-existent entities. Goods and Services Tax (GST) authorities established fraudulent availment of Rs 9.63 crore ITC, resulting in wrongful loss to the government exchequer.
Searches were aimed at tracing the proceeds of crime, identifying further beneficiaries and unearthing documentary and digital evidence relating to the alleged fraudulent ITC network, the officials said. PTI NES VN VN
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