ED raids several locations in UP and Haryana in Rs 9.63 crore GST fraud case

The Enforcement Directorate (ED) conducted searches across several locations in Uttar Pradesh and Haryana on Monday as part of a money laundering probe tied to a Goods and Services Tax (GST) fraud case, according to officials. 

Under the provisions of the Prevention of Money Laundering Act (PMLA), nine premises were searched across Muzaffarnagar and Ghaziabad in Uttar Pradesh, as well as Faridabad in Haryana. The case centers on the alleged fraudulent availment of fake Input Tax Credit (ITC). 

The investigation targets a company named Jambudwip Exports and Imports. Authorities allege that the business generated and passed along bogus ITC by issuing fabricated invoices and e-way bills without any actual movement of goods, they said. 

The company could not be immediately reached for comment regarding the ED's actions.

According to the ED, the company engaged in circular transactions, layered funds, and carried out cash withdrawals through various shell or non-existent entities. GST authorities determined that the fraudulent availment of ITC amounted to Rs 9.63 crore, resulting in wrongful loss to the government exchequer. 

Officials stated that the raids aimed to track the proceeds of crime, identify additional beneficiaries, and gather documentary and digital evidence related to the fake ITC network.  (with inputs from PTI)