ED to Probe ‘Larger Conspiracy’ in GST Case Involving Gujarat Journalist
By: Admin
October 10, 2024
Categories: News ED
4 Min Read
Following the arrest of six individuals, including Gujarat-based journalist Mahesh Langa, in a GST fraud case, the Enforcement Directorate (ED) has launched a money laundering investigation. The ED aims to uncover a “larger conspiracy” behind the fraudulent activities, which involve bogus input tax credit (ITC) claims across more than 220 companies nationwide, officials stated.
The ED has reportedly gathered crucial evidence of financial irregularities and is expected to file an ECIR (Enforcement Case Information Report) soon, which is the agency’s equivalent of an FIR. The probe centers on the misuse of fake bills to claim fraudulent ITC, causing significant losses to the exchequer.
According to an ED officer, “The Ahmedabad Crime Branch’s investigation reveals large-scale ITC fraud through forged identities and documents. The full extent of the conspiracy, involving multiple entities, necessitates a thorough investigation.” The entry of ED into the case signals potential for more raids and property attachments in the near future.
ITC allows businesses to claim a tax credit on goods and services used for business purposes. However, the fraudulent entities in this case used fake identities to create bogus firms and claim tax credits without legitimate transactions.
The Ahmedabad Police raided 14 locations across Gujarat, including Ahmedabad, Junagadh, Surat, Kheda, and Bhavnagar. The six accused, including Mahesh Langa, have been remanded to 10 days of police custody. Investigations revealed that Langa’s wife was a promoter of a company implicated in the fraud, allegedly forging documents and diverting funds through fake bills.
Officials highlighted that the Directorate General of GST Intelligence (DGGI) has increased efforts this year to identify the masterminds behind these ITC fraud syndicates operating across India.
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