The Directorate of Enforcement (ED), Lucknow Zonal Office, today conducted search operations at nine premises in Muzaffarnagar and Ghaziabad in Uttar Pradesh and Faridabad in Haryana in the case of fraudulent availment and passing of bogus Input Tax Credit (ITC).
The searches were conducted under the provisions of the Prevention of Money Laundering Act.
ED in a statement said that the case is related to Jambudwip Exports and Imports Ltd. which is allegedly involved in generating and passing bogus ITC through fabricated invoices and E-way bills without actual movement of goods.
The Agency added that investigation revealed extensive circular transactions, rapid layering of funds and cash withdrawals through multiple bogus and non-existent entities.
GST authorities have established fraudulent availment of 9.63 crore rupees Input Tax Credit and also passing on over 10 core tax credit , resulting in wrongful loss to the Government exchequer.
The searches were aimed at tracing the proceeds of crime, identifying further beneficiaries and unearthing documentary and digital evidence relating to the fraudulent ITC network.